Alliant corporation acquired centerpoint

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Reference no: EM131020850

In 2014, Alliant Corporation acquired Centerpoint Inc. for $412 million, of which $62 million was allocated to goodwill. At the end of 2016, management has provided the following information for a required goodwill impairment test:

Fair value of Centerpoint, Inc.	$	318	million
Fair value of Centerpoint’s net assets (excluding goodwill)		288	million
Book value of Centerpoint’s net assets (including goodwill)		350	million

Required:

1. Determine the amount of the impairment loss. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $380 million. (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).)

Reference no: EM131020850

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