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On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $590 million. The fair value of Harman's identifiable
On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $590 million. The fair value of Harman's identifiable tangible and intangible assets totaled $631 million, and the fair value of liabilities assumed by Pesky was $169 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: $570 million 510 million 594 million Fair value of Harman, Fair value of Harman's net assets (excluding goodwill) Book value of Harman's net assets (including goodwill) Inc Required: 1. Determine the amount of goodwill that resulted from the Harman acquisition 2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2021, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss. XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 Determine the amount of goodwill that resulted from the Harman acquisition and the amount of goodwill impairment loss that Pesky should recognize at the end of 20211, if any. (Negative amounts should be indicated by in millions (i.e., 10,000,000 should be entered as 10)) minus sign. Enter your answers $ 128 Goodwill million 68(million Goodwill impairment loss $ XAnswer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Req 3 If an impairment loss is required, prepare the journal entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10)) Debit No Event General Journal Credit 1 1 Loss on Impairment of Goodwill Goodwill Req 1 and 2 Req 3
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