WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million,...
WebHelper Inc. acquired 100% of the outstanding stock of Silicon
Chips Corporation (SCC) for $45 million, of which $15 million was
allocated to goodwill. At the end of the current fiscal year, an
impairment test revealed the following: fair value of SCC, $40
million; book value of SCC’s net assets (including goodwill), $42
million.
What amount of impairment loss should WebHelper recognize?
Homework Answers
Solution:
Impairment Loss:
Impairment loss is recognized in the books of account when carrying value of the assets are declined. It means this is arises when fair value of the assets is less than book value.
Formula, = Impairment Loss = Book Value of the Assets – Fair Value of the assets
As per given data in question,
Impairment Loss = Book Value of SCC’s Net Assets – Fair Value of SCC
Impairment Loss = $ 42 Million - $ 40 Million
Impairment Loss = $ 2.0 Million
Answer = Impairment Loss = $ 2.0 Million
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WebHelper Inc. acquired 100% of the outstanding stock of Silicon
Chips Corporation (SCC) for $45 million,...
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million,...
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $45 million, of which $15 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $40 million; book value of SCC's net assets (including goodwill), $42 million. What amount of impairment loss should WebHelper recognize? (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Impairment loss million
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.0 million,...
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.0 million, of which $17.0 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $42.0 million; book value of SCC’s net assets (including goodwill), $45.0 million. What amount of impairment loss should WebHelper recognize?
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $461 million,...
WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $461 million, of which $17.2 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $46.2 million; fair value of SCC's net assets (excluding goodwill), $42.6 million; book value of SCC's net assets (including goodwill), $45.3 million. What amount of impairment loss should WebHelper recognize? (Enter your answers in millions, (i.e., 10,000,000 should...
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WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.6 million, of which $18.2 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $43.2 million; fair value of SCC's net assets (excluding goodwill), S32.6 million; book value of SCC's net assets (including goodwill), $46.8 million. What amount of impairment loss should WebHelper recognize? (Enter your answer in millions rounded to 1...
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