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Please help calculate Goodwill impairment loss Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013. As a result,
Please help calculate Goodwill impairment loss
Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companies in 2013. As a result, its consolidated financial statements include the following acquired intangibles: Intangible Asset Date of Acquisition Fair Value at Date of Acquisition Useful Life Customer relationships January 1, 2013 $4,800,000 6 years Favorable leaseholds June 30, 2013 8,000,000 8years Brand names June 30, 2013 21,600,000 Indefinite Goodwill January 1, 2013 600,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia $120,000,000 South America 180,000,000 Europe 300,000,000 Total $600,000,000 It is now December 31, 2014, the end of International Foods' accounting year. No impairment losses were reported on any intangibles in 2013. Assume that International Foo bypasses step of the goodwill impairment test. The following information is available on December 31,2014: Intangible Asset Sum of Future Expected Undiscounted Cash Flows Sum of Future Expected Discounted Cash Flows Customer relationships $1,440,000 $1,080,000 Favorable leaseholds 7,200,000 5,280,000 Brand names 16,800,000 8,400,000 Reporting Unit Unit Carrying Value Unit Fair Value Asia $360,000,000 $480,000,000 South America 240,000,000 420,000,000 Europe 720,000,000 600,000,000 Compute 2014 amortization expense and impairment losses on the above intangibles, following U.S. GAAP. Enter answers in millions, using decimal places when applicable. (in millions) Amortization expense - identifiable intangibles $ 1.8 Impairment losses - Identifiable intangibles 15.32 Goodwill impairment loss 0 X Total 17.12 xStep by Step Solution
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