In 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a...

In 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:

Multiple Choice

$0.
$60 million.
$40 million.
$160 million.

Solutions

Expert Solution

Impairment loss = Carrying value - fair value

= $320 - $260

= $60 million

The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is = $60 million.

ekkarill92 answered 2 years ago

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