Question
Sunland Corporation acquired End-of-the-World Products on January 1, 2020 for $6700000, and recorded goodwill of $1260000 as a result of that purchase. At December 31,
Sunland Corporation acquired End-of-the-World Products on January 1, 2020 for $6700000, and recorded goodwill of $1260000 as a result of that purchase. At December 31, 2021, the End-of-the-World Products Division had a fair value of $5034000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5740000 at that time. What amount of loss on impairment of goodwill should Sunland record in 2021?
A. $1666000
B. $706000
C. $0
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
26th edition
128574361X, 978-1305446052, 1305446054, 978-1285743615
