Answered step by step
Verified Expert Solution
Question
1 Approved Answer
****Please ZOOM IN TO SEE INFO. PICTURE WILL NOT GET LARGER***** I know the first answer is Amortization expense is 1.4 mil I just need
****Please ZOOM IN TO SEE INFO. PICTURE WILL NOT GET LARGER*****
I know the first answer is Amortization expense is 1.4 mil
I just need Impairment Loss- identifiable intangibles
Goodwill impairment loss
and Total.
Help me also by calculating the Fair Value of Identifiable Net Assets because I am lost on how to find it. Thank you and show as much work as possible please.
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 56,400,000 8 years Favorable leaseholds June 30, 2013 9,600,000 16 years Brand names June 30, 2013 28,800,000 indefinite Goodwill January 1, 2013 800,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia South America Europe Total $160,000,000 240,000,000 400,000,000 $800,000,000 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 Foods bypasses step 0 of the goodwill impairment te following information is available on December 31, 2014: Intangible Asset Customer relationships Favorable leaseholds Sum of Future Expected Undiscounted Cash Flows Sum of Future Expected Discounted Cash Flows $1,920,000 $1,440,000 9,600,000 7,040,000 22,400,000 11,200,000 Brand names Reporting Unit Unit Carrying Value Unit Fair Value Asia $480,000,000 $640,000,000 South America 320,000,000 560,000,000 Europe 960,000,000 800,000,000 Compute 2014 amortization expense and impairment losses on the above intangibles, following U.S. GAAP. Enter answers in millions, using decimal places when applicable. 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 56,400,000 8 years Favorable leaseholds June 30, 2013 9,600,000 16 years Brand names June 30, 2013 28,800,000 indefinite Goodwill January 1, 2013 800,000,000 Indefinite Goodwill was assigned to the following reporting units: Asia South America Europe Total $160,000,000 240,000,000 400,000,000 $800,000,000 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 Foods bypasses step 0 of the goodwill impairment te following information is available on December 31, 2014: Intangible Asset Customer relationships Favorable leaseholds Sum of Future Expected Undiscounted Cash Flows Sum of Future Expected Discounted Cash Flows $1,920,000 $1,440,000 9,600,000 7,040,000 22,400,000 11,200,000 Brand names Reporting Unit Unit Carrying Value Unit Fair Value Asia $480,000,000 $640,000,000 South America 320,000,000 560,000,000 Europe 960,000,000 800,000,000 Compute 2014 amortization expense and impairment losses on the above intangibles, following U.S. GAAP. Enter answers in millions, using decimal places when applicableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started