In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2018, management has provided the following information for a required goodwill impairment test:Fair value of Centerpoint, Inc. $220 millionFair value of Centerpoint’s net assets (excluding goodwill) 200 millionBook value of Centerpoint’s net assets (including goodwill) 250 millionRequired:1. Determine the amount of the impairment loss.2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million

Principles of Accounting Volume 1
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ISBN:9781947172685
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...
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In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2018, management has provided the following information for a required goodwill impairment test:
Fair value of Centerpoint, Inc. $220 million
Fair value of Centerpoint’s net assets (excluding goodwill) 200 million
Book value of Centerpoint’s net assets (including goodwill) 250 million
Required:
1. Determine the amount of the impairment loss.
2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million

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