1.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:
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
Required:
1. Determine the amount of the impairment loss.
2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million.