Chow Company Purchased the Chee Division in 2011 and Appropriately

question 105

Multiple Choice

Chow Company purchased the Chee Division in 2011 and appropriately recorded HK$5,000,000 of goodwill related to the purchase.On December 31, 2011, the recoverable amount of Chee Division is HK$58,000,000 and it is carried on Chow's books for a total of HK$54,000,000, including the goodwill.What goodwill impairment should be recognized by Chow in 2011?

• A)HK$0.
• B)HK$1,000,000.
• C)HK$4,000,000.
• D)HK$11,000,000.

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