Question: Using the data from BE12 19 assume that Luigi Corporation is

Using the data from BE12-19, assume that Luigi Corporation is a private entity. Explain how goodwill will 10) be tested for impairment. If the unit's carrying amount (including goodwill) is $3,613,000 and its fair value is $3,550,000, determine the amount of impairment loss, if any, under ASPE.
In exercise
On September 1, 2014, Luigi Corporation acquired Edinburgh Enterprises for a cash payment of $863,000. At the time of purchase, Edinburgh's statement of financial position showed assets of $900,000, liabilities of $460,000, and owners' equity of $440,000. The fair value of Edinburgh's assets is estimated to be $1,160,000. Calculate the amount of goodwill acquired by Luigi.

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