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19 January, 22:05

In 2015, Antle Inc. had acquired Demski Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Co. had a 2016 year-end book value of $580 million. Antle assessed the fair value of Demski at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Antle would record for goodwill at the end of 2016 is:a.$150 million. b.$ 95 million. c.$0. d. None of these answer choices are correct

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  1. 19 January, 23:33
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    c.$0

    Explanation:

    The impairment will be recognize when the book value of the reporting assets exceeds their fair value. this case the assessed fair value is of 700 million while the book value is 580 millon thus, the fair value is greater than book value. No impairment loss should be recognized during 2016

    From the option givens this makes C the correct one.
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