in 2019, Alliant Corporation acquired Centerpoint Inc. for $390 million, of which $60 million was allocated to goodwill At the end of 2021t, management has provided the following information for a required goodwill impairment test Fair value of Centerpoint Inc. Book value of Centerpoint's net assets (excluding goodwill) Book value of centerpoint's net assets (1ncluding goodwill) 5306 illion 270 million 330 illion Exercise 11-31 (Algo) Part 1 Required: 1. Determine the amount of the impairment loss. (Enter your answer in milions (Le, 10,000,000 should be entered as 10). impairment los

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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Exercise 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. At
the end of 2021, management has provided the following information for a required goodwill impairment test
Fair value of Centerpoint Inc.
Book value of Centerpoint's net assets (excluding goodwill)
Book value of Centerpoint's net assets (including goodwill)
$306 million
270 million
330 million
Exercise 11-31 (Algo) Part 1
Required:
1. Determine the amount of the impairment loss. (Enter your answer in millions (Le., 10,000,000 should be entered as 10).
impairment lons
million
Transcribed Image Text:Required information Exercise 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. At the end of 2021, management has provided the following information for a required goodwill impairment test Fair value of Centerpoint Inc. Book value of Centerpoint's net assets (excluding goodwill) Book value of Centerpoint's net assets (including goodwill) $306 million 270 million 330 million Exercise 11-31 (Algo) Part 1 Required: 1. Determine the amount of the impairment loss. (Enter your answer in millions (Le., 10,000,000 should be entered as 10). impairment lons million
Required information
Exercise 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. At
the end of 2021, management has provided the following information for a required goodwill impairment test
$306 million
270 million
Fair value of Centerpoint Inc.
Book value of Centerpoint's net assets (excluding goodwi11)
Book value of centerpoint's net assets (including goodwill)
330 million
Exercise 11-31 (Algo) Part 2
2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $366 million. (Enter your answer in
millions (i.e., 10,000,000 should be entered as 10).
Impairment loss
million
Transcribed Image Text:Required information Exercise 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. At the end of 2021, management has provided the following information for a required goodwill impairment test $306 million 270 million Fair value of Centerpoint Inc. Book value of Centerpoint's net assets (excluding goodwi11) Book value of centerpoint's net assets (including goodwill) 330 million Exercise 11-31 (Algo) Part 2 2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $366 million. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10). Impairment loss million
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