Determine the amount of goodwill that resulted

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Reference no: EM13335546

On May 28, 2013, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $540 million. The fair value of Harman's identifiable tangible and intangible assets totaled $596 million, and the fair value of liabilities assumed by Pesky was $170 million.

Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2013. Management has provided the following information:

Fair value of Harman, Inc.	$	520	million
Fair value of Harman's net assets (excluding goodwill)		460	million
Book value of Harman's net assets (including goodwill)		534	million

Determine the amount of goodwill that resulted from the Harman acquisition.

Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2013, if any.

Reference no: EM13335546

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