Regular Corp.has four divisions.One of them,Zolo Products,was acquired on January 1,2016,for $400,000,000,and recorded goodwill of $50,750,000 as a result of that purchase.At December 31,2016,Zolo Products had a recoverable amount of $375,000,000.The carrying value of the company's net assets at December 31,2016 was $355,000,000 (including goodwill).What amount of loss on impairment of goodwill should Regular record in 2016?
A)$45,000,000
B)$25,000,000
C)$20,000,000
D)-0-

Question

Quizplus · Accepted Answer

The Answer of Regular Corp.has four divisions.One of them,Zolo Products,was acquired on January 1,2016,for $400,000,000,and recorded goodwill of $50,750,000 as a result of that purchase.At December 31,2016,Zolo Products had a recoverable amount of $375,000,000.The carrying value of the company's net assets at December 31,2016 was $355,000,000 (including goodwill).What amount of loss on impairment of goodwill should Regular record in 2016?
A)$45,000,000
B)$25,000,000
C)$20,000,000
D)-0-