In 2009, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to

Question:

In 2009, Alliant acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. Alliant tests for goodwill impairment at the end of each year. At the end of 2011, management has provided the following information:

In 2009, Alliant Corporation acquired Centerpoint Inc. for $300

Required:
1. Determine the amount of the impairment loss.
2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270million.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...