Business
Business, 19.02.2022 23:20, jessicaaaamartin

Identifiable Intangibles and Goodwill, U. S. GAAP International Foods, a U. S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles:

Intangible AssetDate of AcquisitionFair Value at Date of AcquisitionUseful Life
Customer relationshipsJanuary 1, 2019$4,000,0004 years
Favorable leaseholdsJune 30, 20198,000,0005 years
Brand namesJune 30, 201918,000,000Indefinite
GoodwillJanuary 1, 2019500,000,000Indefinite
Goodwill was assigned to the following reporting units:

Asia$100,000,000
South America150,000,000
Europe250,000,000
Total$500,000,000
It is now December 31, 2020, the end of International Foods’ accounting year. No impairment losses were reported on any intangibles in 2019. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indefinite-life intangibles. Additional information at December 31, 2020 is as follows:

Intangible AssetSum of Future Expected Undiscounted Cash FlowsSum of Future Expected Discounted Cash Flows
Customer relationships$1,200,000$900,000
Favorable leaseholds6,000,0004,400,000
Brand names14,000,0007,000,000
Reporting UnitUnit Carrying ValueUnit Fair Value
Asia$300,000,000$400,000,000
South America200,000,000350,000,000
Europe600,000,000500,000,000
Required

Compute 2020 amortization expense and impairment losses on the above intangibles, following U. S. GAAP.

Enter answers in millions, using decimal places when applicable.

(in millions)
Amortization expense - identifiable intangibles$
Impairment losses - identifiable intangibles
Goodwill impairment loss
Total$

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 07:40, carliehanson9908
Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?
Answers: 1
image
Business, 22.06.2019 14:00, mrfishyyyy
Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.
Answers: 2
image
Business, 22.06.2019 14:20, Champion9701
For the year ended december 31, a company has revenues of $323,000 and expenses of $199,000. the company paid $52,400 in dividends during the year. the balance in the retained earnings account before closing is $87,000. which of the following entries would be used to close the dividends account?
Answers: 3
image
Business, 22.06.2019 18:00, wirchakethan23
Match the different financial task to their corresponding financial life cycle phases
Answers: 3
Do you know the correct answer?
Identifiable Intangibles and Goodwill, U. S. GAAP International Foods, a U. S. company, acquired t...

Questions in other subjects:

Konu
English, 15.02.2021 22:20