Question 2 (of 23) in 2015, Ante nc. had acquired Demski Co. and recorded goodwi

Question

Question 2 (of 23) in 2015, Ante nc. had acquired Demski Co. and recorded goodwill of $290 millon as a result. The net assets Including goodwill) from Antle's acquisition of Demskl Co. had a 2016 year-end book value of $625 million Antle assessed the fair value of Demskl at this date to be $745 million, while the fair value of all of Demskis Identifiable tangible and Intangible assets (excluding goodwl) was $626 million. The amount of the Impairment loss that Antle would record for goodwill at the end of 2016 is: . O None of these answer choices are correct $0. O$119 milion. O $171 million. FI F2 FS

Explanation / Answer

Impairment loss should be recognised in case of Book Value exceeds Fair value. In our case Fair Value is more than Book Value. Therefore, there will not be any Impairment loss. The right answer is option is (b) $ 0.

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