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In 2011 alliant corporation acquired centerpoint inc for

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In 2011, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2013, management has provided the following information for a required goodwill impairment test:


  Fair value of Centerpoint, Inc. $ 220 million
  Fair value of Centerpoint's net assets (excluding goodwill)
200 million
  Book value of Centerpoint's net assets (including goodwill)
250 million

Required:
1.

Determine the amount of the impairment loss.(Enter your answer in millions.)


2.

Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million.



Because the
value of the reporting unit,
million, exceeds
value,

million, there
impairment loss.

Reference no: EM13574680

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