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victus00 [196]
3 years ago
12

In 2019, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the

end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 402 million Book value of Centerpoint’s net assets (excluding goodwill) 352 million Book value of Centerpoint’s net assets (including goodwill) 450 million Required: 1. Determine the amount of the impairment loss. (Negative amount should be indicated by a minus sign. Enter your answer in millions (i.e., 10,000,000 should be entered as 10)).
Business
1 answer:
ohaa [14]3 years ago
6 0

Answer:

$48 million

Explanation:

In this scenario, we compare the values between book value including goodwill and the fair value of machinery, the difference would be the loss on impairment of the asset

In mathematically,  

= Book value including goodwill - fair value  

= $450 million - $402 million

= $48 million

All other information which is given is not relevant. Hence, ignored it

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chubhunter [2.5K]
Those services are <span>considered to be part of the user company's information system.
The information system obviously provides relevant information about something - given that here services are given which may have an effect on the initiation, execution, processing, or reporting of a user company's transactions, they do belong to the information system of that company.

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8 0
4 years ago
Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full
Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0
3 years ago
Saira, Inc. has the following income statement (in millions): SAIRA, INC. Income Statement For the Year Ended December 31, 2017,
AysviL [449]

Answer:

60%

Explanation:

To calculate the percentage assigned to cost of goods sold , we should use the formula:

=\frac{Cost Of Goods Sold}{Sales}

= \frac{180}{300}

= 0.60 = 60%

Therefore, the percentage assigned to Cost of goods sold is 60%

5 0
3 years ago
As mentioned in the video, the US produces an annual "List of Goods Produced by Child Labor or Forced Labor." How effective do y
lina2011 [118]

Answer and Explanation:

By publishing the "List of Goods Produced by Child Labor or Forced Labor" the American government is able to raise awareness among the population that, although child labor is something inconceivable in American society, it still happens with great intensity in various places around the world. This allows the population to become aware of this situation and to stop buying products produced by companies that finance and allow child labor to happen. When they stop using these products, companies suffer a decrease in demand, which can cause significant changes in the production and in the lives of children who need to work.

While consumer pressure at companies that allow child labor is effective, pressure from political and commercial authorities is more effective in bringing about change and ensuring the protection of children, as these authorities can promote severe punishments for those who allow this to happen.

7 0
3 years ago
With brick-and-mortar toy stores closing, board game manufacturers expect to have trouble finding as many consumers interested i
Oxana [17]

Answer:

This is how the market for board games would be affected in the explanation below

Explanation:

Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.

3 0
3 years ago
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