Company A acquired B on January 1, 2018 for $8,000,000, and recorded goodwill of $1,500,000...
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Accounting
Company A acquired B on January 1, 2018 for $8,000,000, and recorded goodwill of $1,500,000 as a result of that purchase. At December 31, 2018, B had a fair value of $6,800,000. The book value of net identifiable assets of B is $7,300,000 (including good will) at that time.
What amount of loss on impairment of goodwill should Jenks record in 2018?
a) 0
b) 1,200,000
c) 700,000
d) 500,000
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