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Determine the amount of impairment of goodwill

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Question - On July 12, 2017, Browning Corporation acquired Smith Company in a business combination. As a result of the combination, the following amounts of goodwill were recorded for each of the three reporting units of the acquired company.

Retailing $60,000

Service $40,000

Financing $80,000

Near the end of 2017 a new major competitor entered the company's market and Browning was concerned that this might cause a significant decline in the value of goodwill. Accordingly, Browning computed the implied value of the goodwill for the three major reporting units at December 31, 2017 as follows:

Retailing $50,000

Service $20,000

Financing $120,000

Required - Determine the amount of impairment of goodwill that should be recorded by Browning at December 31, 2017.

Reference no: EM132954461

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