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related to the Saie on the equi consolidated Financial statements with various Intercompany Transactions Several years ago Puma Athletics acquired all of the outstanding stock
related to the Saie on the equi consolidated Financial statements with various Intercompany Transactions Several years ago Puma Athletics acquired all of the outstanding stock of Serengeti Footwear. The acquisition cost was $40 million in excess of Serengeti's book value of $10 million, attributed to indefinite lived brand names with a fair value of $8 million, and goodwill. The brand names are unimpaired, but the good- will was impaired by S2 million as of the beginning of the current year. There is no goodwill impairment in the current year. The following information relates to intercompany transactions Puma's beginning inventory includes $500,000 of intercompany profit on goods purchased from Serengeti. Puma made no intercompany purchases during the current year and has no ending inven- tory of goods purchased from Serengeti. Serengeti s ending inventory includes $300,000 of intercom- pany profit on purchases of $4,000,000 from Puma. Serengeti's other expenses include a loss of $200,000 on an intercompany sale of land to Puma
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