Exercise $11-33($Algo$)$ Goodwill valuation and impairment; Chapters $10$ and $11[$LO$11-8]$

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

$$560$ 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 $10).$

Goodwill

million

Goodwill impairment loss

million