In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50 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) $ 220 million 200 million 250 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 $270 million. 000.000 101
In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50 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) $ 220 million 200 million 250 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 $270 million. 000.000 101
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50
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)
2. Goodwill
3. Impairment loss
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 $270 million.
Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10).
$
$ 220 million.
200 million
250 million
million
0 million
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2506e569-93af-492f-994b-a8ea5f74e749%2F526e97f2-1ae4-4c70-8086-8eeda4ee15d0%2F95383dk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50
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)
2. Goodwill
3. Impairment loss
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 $270 million.
Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10).
$
$ 220 million.
200 million
250 million
million
0 million
Check my work
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