Question
WebHelper Incorporated acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45.7 million, of which $16.4 million was allocated to goodwill. At
WebHelper Incorporated acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45.7 million, of which $16.4 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $46.1 million; book value of SCCs net assets (including goodwill), $44.1 million.
What amount of impairment loss should WebHelper report in its income statement?
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Financial Accounting
Authors: LibbyShort
7th Edition
78111021, 978-0078111020
