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Compute the impairment loss

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Question: Company A acquired Company B for $50,000,000 on January 1. The fair value of Company B's accounts are the following:

Cash $2,500,000;

Accounts Receivable $8,000,000;

Inventory $3,500,000;

Property, Plant, and Equipment $20,000,000;

Liabilities $18,000,000;

Common Stock $12,000,000.

On December 31, the fair value of Company B was $26,000,000. Compute the impairment loss, if any.

Reference no: EM132764686

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