Sunrise Industries acquired Moonlight Technologies on January 1, 2022, for $9,500,000 and recorded goodwill of $1,800,000 as a result of the acquisition. At December 31, 2022, the Moonlight Technologies Division had a fair value of $8,200,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $6,900,000 at that time. What amount of impairment loss on goodwill should Sunrise Industries record for 2022? a. $0 b. $500,000 c. $1,300,000 d. $1,800,000

Sunrise Industries acquired Moonlight Technologies on January 1, 2022, for $9,500,000 and recorded goodwill of $1,800,000 as a result of the acquisition. At December 31, 2022, the Moonlight Technologies Division had a fair value of $8,200,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $6,900,000 at that time. What amount of impairment loss on goodwill should Sunrise Industries record for 2022? a. $0 b. $500,000 c. $1,300,000 d. $1,800,000

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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