$6$

On May $28,2024,$ Pesky Corporation acquired all of the outstanding common stock of Harman, Incorporated, for $$580$ million. The fair value of Harman's identifiable tangible and intangible assets totaled $$624$ million, and the fair value of liabilities assumed by Pesky was $$166$ million.

$0\mathrm{.}71$

points

$5$kipped

Pesky performed a goodwill impairment test at the end of its fiscal year ended December $31,2024.$ Management has provided the following information:

$\backslash$table$[[$Fair value of Harman, Incorporated,$$560$ million$],[$Fair value of Harman's net assets $($excluding goodwill$),500$ million$],[$Book value of Harman's net assets $($including goodwill$),582$ million$]]$

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

$500$ million

Book value of Harman's net assets $($including goodwill$)582$ million

Required:

Determine the amount of goodwill that resulted from the Harman acquisition.

Determine the amount of goodwill impairment loss that Pesky should recognize at the end of $2024,$ if any.

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

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Determine the amount of goodwill that resulted from the Harman acquisition.

Determine the amount of goodwill impairment loss that Pesky should recognize at the end of $2024,$ if any.

Note: Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

$\backslash$table$[[1.$ Goodwill,nillion$],[2.$ Goodwill impairment loss,million$]]$

On May $28,2024,$ Pesky Corporation acquired all of the outstanding common stock of Harman, Incorporated, for $$580$ million. The fair value of Harman's identifiable tangible and intangible assets totaled $$624$ million, and the fair value of liabilities assumed by Pesky was $$166$ million.

Pesky performed a goodwill impairment test at the end of its fiscal year ended December $31,2024.$ Management has provided the following information:

Fair value of Harman, Incorporated

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

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

$$560$ million

$500$ million

$582$ million

Required:

Determine the amount of goodwill that resulted from the Harman acquisition.

Determine the amount of goodwill impairment loss that Pesky should recognize at the end of $2024,$ if any.

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

Complete this question by entering your answers in the tabs below.

Req $1$ and $2$

Req $3$

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

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

Journal entry worksheet

$1$

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

Note: Enter debits before credits.

$\backslash$table$[[$Event$,$General Journal,Debit,Credit$],[1,,,],[,,,],[,,,],[,,,],[,,,],[,,,]]$