F51. Kingston Corporation has $102 million of goodwill on its books from the 2019 acquisition of Reliant Motors. At the end of its 2021 fiscal year, management has provided the folowing information for its requiredgoodwill impairment test (S in millions)Fair value of Reliant (approximates fair value less costs to sell)$.648Fair value of Reliant's net assets (excluding goodwil)Book value of Relant's net assets (including goodwili)607707Present value of estimated future cash flows674Assuming that Reliant is considered a cash-generating unit for IFRS, the amount of goodwill impairment loss that Kingston should recognize according to FRS is$33 milion$59 milion50$41 million

Impairment is the difference between the carrying value of asset or cash generating unit and the…

Kingston Corporation has $102 million of goodwill on its books from the 2019 acquisition of Reliant Motors. At the end of its 2021 fiscal year, management has provided the following information for its required goodwill impairment test ($ in millions) Fair value of Reliant (approximates fair value less costs to sell) Fair value of Reliant's net assets (excluding goodwill) Book value of Relant's net assets (including goodwill) Present value of estimated future cash flows Assuming that Reliant is considered a cash-generating unit for IFRS, the amount of goodwill impairment loss that Kingston should recognize according to FRS is $33 milion $59 milion O 50 $ 648 607 707 674 $41 min

Kingston Corporation has $102 million of goodwill on its books from the 2019 acquisition of Reliant Motors. At the end of its 2021 fiscal year, management has provided the following information for its required goodwill impairment test ($ in millions) Fair value of Reliant (approximates fair value less costs to sell) Fair value of Reliant's net assets (excluding goodwill) Book value of Relant's net assets (including goodwill) Present value of estimated future cash flows Assuming that Reliant is considered a cash-generating unit for IFRS, the amount of goodwill impairment loss that Kingston should recognize according to FRS is $33 milion $59 milion O 50 $ 648 607 707 674 $41 min

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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