In 2011, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2013, management has provided the following information for a required goodwill impairment test:
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|
|
|
| Fair value of Centerpoint, Inc. |
$ |
220 |
million |
| Fair value of Centerpoint's net assets (excluding goodwill) |
|
200 |
million |
| Book value of Centerpoint's net assets (including goodwill) |
|
250 |
million |
|
| 1. |
Determine the amount of the impairment loss.(Enter your answer in millions.)
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| 2. |
Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million.
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|
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| Because the |
|
value of the reporting unit, |
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million, exceeds |
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value, |
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million, there |
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impairment loss. |
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