On September 1, 2020, Piper Corporation acquired Darcy
Enterprises for a cash payment of $850,000. At the time of
purchase, Darcy’s statement of financial position showed assets of
$890,000, liabilities of $450,000, and owner’s equity of $440,000.
The fair value of Darcy’s assets is estimated to be $1,150,000.
Assume that Piper is a public company and the goodwill was
allocated entirely to one cash-generating unit (CGU). Two years
later, the CGU’s carrying amount is $3,450,000; its value in use is...