Required informationExercise 11-31 (Algo) Impairment; goodwill (LO11-8)(The following information applies to the questions displayed below)In 2019, Alliant Corporation acquired Centerpoint Inc. for $390 million, of which $60 million was allocated to goodwill. Atthe end of 2021, management has provided the following information for a required goodwill impairment testFair value of Centerpoint Inc.Book value of Centerpoint's net assets (excluding goodwill)Book value of Centerpoint's net assets (including goodwill)$306 million270 million330 millionExercise 11-31 (Algo) Part 1Required:1. Determine the amount of the impairment loss. (Enter your answer in millions (Le., 10,000,000 should be entered as 10).impairment lonsmillion Required informationExercise 11-31 (Algo) Impairment; goodwill (LO11-8)(The following information applies to the questions displayed below.)In 2019, Alliant Corporation acquired Centerpoint Inc. for $390 million, of which $60 million was allocated to goodwill. Atthe end of 2021, management has provided the following information for a required goodwill impairment test$306 million270 millionFair value of Centerpoint Inc.Book value of Centerpoint's net assets (excluding goodwi11)Book value of centerpoint's net assets (including goodwill)330 millionExercise 11-31 (Algo) Part 22. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $366 million. (Enter your answer inmillions (i.e., 10,000,000 should be entered as 10).Impairment lossmillion

The impairment loss is decrease in carrying value to present assets at their fair value.

Answered: in 2019, Alliant Corporation acquired…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jacky Inc. purchased Manzanita Marine on June 1, 2015 for $25,000,000 and recorded goodwill of $3,100,000 in connection with the purchase. At December 31, 2018, the Manzanita Marine Division had a fair value of $25,400,000. The net assets of Manzanita (including goodwill) had a fair value of $24,900,000 at that time. What amount of loss on impairment of goodwill should Jacky record in 2018?
Goodwill Impairment On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $39,457,500, a price reflecting an $5,918,625 goodwill premium. On December 31, 20Y9, The Simmons Group determined that the goodwill from the NWS acquisition was impaired and had a value of only $2,219,484. a. Determine the book value of the goodwill on December 31, 20Y9, prior to making the impairment adjustment.$fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the December 31, 20Y9, adjustment for the goodwill impairment. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Balance Sheet Assets = Liabilities + Stockholders' Equity Goodwill + No effect = No effect + Retained Earnings 20Y9 Dec. 31. fill in the blank 6 fill in the blank 7 fill in the…
Required information [The following information applies to the questions displayed below.] In 2022, Alliant Corporation acquired Centerpoint Incorporated for $352 million, of which $62 million was allocated to goodwill. At the end of 2024, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Incorporated Book value of Centerpoint's net assets (excluding goodwill) Book value of Centerpoint's net assets (including goodwill) $ 256 million 228 million 290 million 2. Determine the amount of goodwill reported in the year-end 2024 balance sheet. 3. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $318 million. Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10). 2. Goodwill 3. Impairment loss million million
Wildhorse Corporation acquired End-of-the-World Products on January 1, 2020 for $6250000, and recorded goodwill of $1170000 as a result of that purchase. At December 31, 2021, the End-of-the-World Products Division had a fair value of $4580000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5290000 at that time. What amount of loss on impairment of goodwill should Wildhorse record in 2021?
Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and recorded goodwill of $1150000 as a result of that purchase. At December 31, 2021, the End-of-the-World Products Division had a fair value of $4482000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5190000 at that time. What amount of loss on impairment of goodwill should Carla Vista record in 2021? $960000 $1668000 $0 $708000
On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31, 2021, financial statements, the valuation of an acquired trademark was incornplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 financial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fr. the increase or (decrease) of the Goodwill in December 31, 2022
Hw.104. On January 3, Luna Inc. acquired all noncash assets and assumed all liabilities of Saturn Company at a cash purchase price of $960,000. Luna determined that the fair value of the assets acquired in the transaction is $1,120,000 and the fair value of liabilities is $480,000. The book value of the net assets at the purchase date was $600,000. a. Determine the amount of goodwill recorded by Luna upon purchase of Saturn Company. b. Assume that Luna is a private company that elects to amortize goodwill on a straight-line basis over 10 years. Prepare the amortization entry at December 31
On September 1, 2020, Flint Corporation acquired Tamarisk Enterprises for a cash payment of $710,000. At the time of purchase, Tamarisk's balance sheet showed assets of $560,000, liabilities of $240,000, and owners' equity of $320,00O. The fair value of Tamarisk's assets is estimated to be $790,000. Compute the amount of goodwill acquired by Flint. Value assigned to goodwill $
In 2021, Colburn Inc. had acquired Pebble Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Colburn's acquisition of Pebble Co. had a 2022 year-end book value of $580 million. Colburn assessed the fair value of Pebble at this date to be $700 million, while the fair value of all of Pebble 's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Colburn would record for goodwill at the end of 2022 is: $0. $95 million. $150 million. None of the above is correct.
ProForm acquired 70 percent of ClipRite on June 30, 2020, for $910,000 in cash. Based on ClipRite’s acquisition-date fair value, an unrecorded intangible of $400,000 was recognized and is being amortized at the rate of $10,000 per year. No goodwill was recognized in the acquisition. The noncontrolling interest fair value was assessed at $390,000 at the acquisition date. The 2021 financial statements are as follows: *see image ClipRite sold ProForm inventory costing $72,000 during the last six months of 2020 for $120,000. At year-end, 30 percent remained. ClipRite sold ProForm inventory costing $200,000 during 2021 for $250,000. At year-end, 10 percent is left. Determine the consolidated balances for the following: SalesCost of Goods SoldOperating ExpensesDividend IncomeNet Income Attributable to Noncontrolling InterestInventoryNoncontrolling Interest in Subsidiary, 12/31/21
During 2021, Carla Vista Company purchased the net assets of Sandhill Corporation for $2219800. On the date of the transaction, Sandhill had $605400 of liabilities. The fair value of Sandhill's assets when acquired were as follows: Current assets $1089720 Noncurrent assets 2542680 $3632400 How should the $807200 difference between the fair value of the net assets acquired ($3027000) and the cost ($2219800) be accounted for by Carla Vista?
Frodo Corp. bought Aardvark Co. in 2021 and appropriately recorded goodwill related to the purchase. On December 31, 2022, Frodo Corp. reports the following information relating to Aardvark Division: Amount $131,000 $393,000 $658,000 How much loss from goodwill impairment should be recognized by Frodo Corp. in 2022? $265,000 $134.000 Item Goodwill Book value of net assets (including goodwill) Fair value $0 $131,000

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