In 2018, Martin Corp. acquired Glynco and recorded goodwill of $117 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $337 million and its estimated fair value is $290 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:

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Business

Zackery

9 June, 20:41

In 2018, Martin Corp. acquired Glynco and recorded goodwill of $117 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $337 million and its estimated fair value is $290 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:

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Anaya Flynn · Answer 1

The amount of impairment loss attributable to goodwill is the actual impairment loss of $47 million

Explanation:

The impairment loss = Carrying value - fair value

carrying value is $337 million

fair value is $290 million

the impairment loss=$337 million-$290 million

=$47 million

The amount of the impairment loss that would recorded for goodwill at end of 2021 is $47 million, hence the balance of goodwill would be $70 million ($117-$47)