Question
Regular Corp. has four divisions. One of them, Weeble Products, was acquired on January 1, 2016, for $60,000,000, and recorded goodwill of $6,000,000 as a
Regular Corp. has four divisions. One of them, Weeble Products, was acquired on January 1, 2016, for $60,000,000, and recorded goodwill of $6,000,000 as a result of that purchase. At December 31, 2017, Weeble Products had a fair value (including goodwill) of $37,000,000. and the book value of the company's net assets (without goodwill) was $44,000,000. The fair value of Weeble's net assets (without goodwill) at December 31, 2017 was $33,000,000. What amount of loss on impairment of goodwill should Regular record in 2017?
The answer is $2,000,000. I want to know how to calculate.
Step 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