Prossart Company Owned 70% of the Outstanding Stock of Say

question 23

Multiple Choice

Prossart Company owned 70% of the outstanding stock of Say Company.During the annual goodwill impairment test, the following information pertaining to Say was noted:
$$\begin{array} { l r } \text { Book value of net assets } & \$ 2,000,000 \\\text { Fair value of Say Company } & 1,800,000 \\\text { Estimated fair value of net identifiable assets } & 1,700,000 \\\text { Recorded goodwill } & 200,000\end{array}$$ The amount of goodwill impairment loss that would be recorded on Prossart's books would be:

• A)$200,000
• B)$140,000
• C)$100,000
• D)$70,000

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