Ch. 11 Test 13 0.00 points Brief Exercise 11-14 Impairment; goodwill Lo11-8] Wet

Question

Ch. 11 Test 13 0.00 points Brief Exercise 11-14 Impairment; goodwill Lo11-8] Wet Helper Inc. acq red 100% of the outstanding stock of Silicon Ops Corporation (SCC) for S464 8 million was allocated to goodwall. At the end of the current fiscal year an test revealed the following: fair value of SCC, $46.8 million, fair value of SCC's net assets million, of which $17. (excluding goodwl), $42 9 million, book value of SCC's net assets (including goodwill), $46.2 million What anount of impaiment loss shoud WebHelper recognize? Enter your answers in millions, (i.e 10,000,000 should be entered as 10).) Worksheet Brief Exercise 11. 14 impairment, goodwall LOII-8 TOSHIBA esc 2 3 4 5 tab 9

Explanation / Answer

Impairment test $ in Millions fair value SCC 46.8 fair value SCC net assets Excluding Goodwill 42.9 Book value SCC net assets Including Goodwill 46.2 incase of Book value of net Assets Exceeds the fair value of net assets , then there is a Impairment loss. Test is to be performed to measure the amount of impairment loss. Since the fair value of the reporting unit, $46.80 million, is higher than the carrying amount (including goodwill), $46.2 million, indicates that there's no impairment loss. Impairment loss " $0"

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