In 2015,Antle Inc.had acquired Demski Co.and recorded goodwill of $245 million as a result.The net assets (including goodwill)from Antle's acquisition of Demski Co.had a 2016 year-end book value of $580 million.Antle assessed the fair value of Demski at this date to be $700 million,while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill)was $550 million.The amount of the impairment loss that Antle would record for goodwill at the end of 2016 is:

Question

Quizplus · Accepted Answer

Goodwill impairment occurs when the carrying amount of goodwill exceeds its fair value. Since the fair value of Demski ($700 million) is greater than the book value of the net assets ($580 million), there is no impairment loss.