Question

In 2020, Antle Inc. had acquired Demski Co. and recorded goodwill of $275 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2021 year-end book value of $610 million. Antle assessed the fair value of the Demski reporting unit at this date to be $730 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $583 million. The amount of the impairment loss that Antle would record for goodwill at the end of 2021 is: Multiple Choice $147 million. $128 million. $0. $120 million.

Answer 1

The correct answer is $0

Step-by-step explanation:

Solution

An Impairment loss recognized when a book value of reporting company is more than its fair value, In the given example, the book value is not more than its fair value or higher than the value, hence the amount of the impairment loss that Antle Inc would record for goodwill at the end of 2021 is: Impairment loss is $0