This is the first year in which AM has implemented its policy of performing formal quantitative goodwill impairment tests. In preparation for the upcoming financial statement audit of AM and its subsidiaries, and for future audits, Mickelson would like you to provide documentation of the process that should be used in determining the appropriate goodwill valuation in accordance with U$.$S$.$ GAAP. ZD Corporation

Balance Sheet

Summary December

$31,2019$

Assets

Current Assets $25,000,000$

Property, Plant, & Equipment, net $15,000,000$

Total Assets $,40,000,000$

Liabilities

Current Liabilities

Bonds Payable $($maturity date$-12/31/2024)$

Total Liabilities

Stockholders' Equity

Common Stock$/$Additional Paid$-$In$-$Capital

Retained Earnings

Total Stockholders' Equity

Total Liabilities and Stockholders' Equity

$21,000,000$

$8,000,000$

$29,000,000$

$8,000,000$

$3,000,000$

$11,000,000$

$40,000,000$

ries

Hope Industries

Balance Sheet Summary

December $31,2019$

Assets

Current Assets

Property, Plant, & Equipment, net

$16,500,000$

$11,500,000$

Total Assets

$28,000,000$

Liabilities

Current Liabilities

Bonds Payable $($maturity date$-12/31/2023)$

Total Liabilities

$13,800,000$

$\frac{6,200,000}{20,000,000}$

Stockholders' Equity

Common Stock$/$Additional Paid$-$In$-$Capital

Retained Earnings

$10,000,000$

Total Stockholders' Equity

$\frac{(2,000,000)}{8,000,000}$

Total Liabilities and Stockholders' Equity

$28,000,000$ APPENDIX B

Property, Plant, and Equipment Information

D Corporation

upon lowest level in which related cash flows are independent of other assets.

ope Industries

upon lowest level in which related cash flows are independent of other assets.

What is the goodwill valuation?