Question
In 2019, Alliant Corporation acquired Centerpoint Inc. for $520 million, of which $90 million was allocated to goodwill. At the end of 2021, management has
In 2019, Alliant Corporation acquired Centerpoint Inc. for $520 million, of which $90 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test:
| Fair Value of Centerpoint Inc. | $386 million | |
| Book Value of Centerpont's net assets (excluiding goodwill) | $340 million | |
| Book Value of Centerpoint's net assets (including goodwill) | $430 million |
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[The following information applies to the questions displayed below.] In 2019, Alliant Corporation acquired Centerpoint Inc. for $520 million, of which $90 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test:
| Fair value of Centerpoint Inc. | $ | 386 | million |
| Book value of Centerpoints net assets (excluding goodwill) | 340 | million | |
| Book value of Centerpoints net assets (including goodwill) | 430 | million | |
Required: 1. Determine the amount of the impairment loss.
2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $476 million
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Data Analytics For Accounting
Authors: Vernon Richardson
3rd Edition
1264444907, 9781264444908
