Impairment loss for 2013 for the customer lists and brand names, following IFRS, is
a. $ 0
b. $ 300,000
c. $1,800,000
d. $2,100,000
Use the following information to answer questions 5-8 below:
A company reports the following intangibles at December 31, 2013, prior to impairment testing:

The customer lists have a limited life, and amortization expense has already been properly recorded, whereas the brand names have indefinite lives. The goodwill is allocated to Divisions 1 and 2 for both U.S. GAAP and IFRS.
Assume the company bypasses the Step 0 qualitative assessment. On December 31, 2013, the following information is available:

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Book value 5,200,000 Goodwill. 8,000,000 Division 1 Division 2 Fair value of division..14,000,000 20,000,000 24,000,000 Fair value of identifiable net assets of division.......... .13,000,000 12,000,000 Total expected undiscounted $1,600,000 Total expected future cash inflows, discounted future cash inflows, Intangible asset Customer lists. $1,200,000 3,400,000 4,000,000