Question
On January 1, 2018 Zan Pharma acquired Abo Pharma for $520,000 Million of which $70 Million was allocated to Goodwill. After the acquisition, Abo continues
On January 1, 2018 Zan Pharma acquired Abo Pharma for $520,000 Million of which $70 Million was allocated to Goodwill. After the acquisition, Abo continues to operate as a separate reporting unit a separate company.
At the end of 2020, management provided the following information for a required impairment test. (in million $)
| Fair value of Abo Pharma | $420 |
| Fair value of Abo Pharma net asset (excluding goodwill) | 360 |
| Book value of Abo Pharma net asset (including goodwill) | 500 |
Required: Determine the amount of Goodwill Impairment loss that Zan Pharma should recognize at the end of 2020, if any.
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Advanced Financial Accounting
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
6th edition
013703038X, 978-0137030385
