Question
On December 31, 2020, Monty Corporation paid $5556500 to acquire Pronghorn Company and recorded $1636500 of goodwill as a result of the purchase. On
On December 31, 2020, Monty Corporation paid $5556500 to acquire Pronghorn Company and recorded $1636500 of goodwill as a result of the purchase. On December 31, 2022, Monty determines that the fair value of the Pronghorn division is $6506500 and the carrying amount of Pronghorn's net assets on that date is $6206500 (the carrying value and the fair value of identifiable net assets are the same). What amount of loss on impairment of goodwill should Monty record at December 31, 2022?
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International Accounting
Authors: Timothy Doupnik, Hector Perera
3rd Edition
978-0078110955, 0078110955
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