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Compute the amount of the goodwill impairment loss

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Question - In 2021, John Bonham Inc. acquired Zeppi Company and recorded $245 million of goodwill as a result of this acquisition. At the end of 2022, Bonham decided to test for impairment of goodwill associated with its acquisition of Zeppi Company. At the end of 2022, the book value of Zeppi Company's net assets (including goodwill) in Bonham's Company's accounting records was $580 million. Also at the end of 2022, Bonham assessed the fair value of Zeppi to be $700 million, while the fair value of Zeppi's net assets was $550 million. Compute the amount of the goodwill impairment loss that Bonham would record at the end of 2022?

A) $150 million.

B) $95 million.

C) $0

D) $120 million.

Reference no: EM132476549

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