In December 2015, Constellation Brands (STZ) acquired Ballast Point for $998.5 million, net of cash acquired. Its in 10-k for the fiscal year ended 4/25/2016, Constellation Brands reported "The transaction primarily included the acquisition of goodwill, trademarks and property, plant and equipment. This acquisition provides us with a high-growth premium platform that will enable us to compete in the fast-growing craft beer category, further strengthening our position in the high-end U.S. beer market."

The following table included in the 10k summarizes the preliminary allocation of the estimated fair value for the significant assets acquired (in millons):

Goodwill	$761.8
Trademarks	222.8
Other	15.4
Total Estimated Fair Value	1,000
Less - Cash acquired	(1.5)
Total Purchase Price	998.5

36. In its 10-k for fiscal year 2018, Constellation reported:

"For the first quarter of fiscal 2018, we identified certain negative trends within our Beer segments Ballast Point craft beer portfolio which, when combined with the recent negative craft beer industry trends, including slower growth rates and increased competition, indicated that it was more likely than not that the fair value of our indefinite lived intangible asset associated with the craft beer trademarks might be below its carrying value."

What should Constellation do next with respect to the Ballast Point trademarks?

Group of answer choices

Perform a quantitative assessment for impairment of the trademarks.

Perform a qualitative assessment for impairment of the trademarks.

Perform a recoverability test based on future undiscounted cash flows of the trademark

Nothing

37. Similar craft brewery trademarks have sold for $136.0 Million. What should Constellation do now with respect to the Ballast Point trademarks?

Group of answer choices

Debit Impairement Loss for Ballast Point trademarks 86.8 Million

Credit Impairement Loss for Ballast Point trademarks 86.8 Million

Debit Impairement Loss for Ballast Point trademarks 136.0 Million

Credit Impairement Loss for Ballast Point trademarks 136.0 Million

38. In the beginning of Constellation's 2019 fiscal year, sales in their craft beer division spiked and there were indications that the Ballast Point trademark's fair value would recover. In its 10-Q for the first quarter of the 2019, what should Constellation do with respect to the Ballast Point trademarks?

Group of answer choices

Nothing

Reduce the impairment loss recorded agaisnt the trademarks in 2018

Remove the impairment loss recorded agaisnt the trademarks in 2018

Quantify a gain associated with the Ballast Point trademarks

39. In its fiscal year 2020 10-K, Constellation Brands noted that certain net assets associated with the Ballast Point brand met the held for sale criteria as of February 29, 2020. What should Constellation Brands do now?

Group of answer choices

Report the net assets held for sale on the BS at the lower of cost or market (NRV) value.

Continue to amortize the intangible assets.

Continue to depreciate the tangible assets.

Nothing

40. On its 10-k for the year ended February 29, 2020, Constellation reported "in connection with the Ballast Point Divestiture, long-lived assets held for sale with a carrying value of $81.3 million were written down to their estimated fair value of $41.1 million, less costs to sell." Assume costs to sell are $2.5 million. What impairment on assets held for sale should Constellation record associated with the Ballast Point divestiture?

Group of answer choices

An impairment loss of $42.7 million

An impairment loss of $41.1 million

An impairment loss of $2.5 million

Constellation shouldn't record any loss