On 28th may 2013 pesky corporation acquired all of the

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Reference no: EM13351620

On 28^th May, 2013, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $420 million. The fair value of Harman's identifiable intangible and tangible assets totaled $512 million, and the fair value of liabilities supposed by Pesky was $150 million.

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

1. Evaluate the amount of goodwill that resulted from the Harman acquisition.

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

3. If an impairment loss is needed, prepare the journal entry to record the loss.

Fair value of Harman, Inc. $ 400 million

Fair value of Harman's net assets (excluding goodwill)

Book value of Harman's net assets (including goodwill)

Reference no: EM13351620

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