Question

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:

Answer 1

$60 million

Step-by-step explanation:

The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is shown in the solution below:

Impairment loss =

Carrying value - fair value

= $320million - $260million

= $60million