Following Its Acquisition of the Net Assets of Dan Company

question 14

Multiple Choice

Following its acquisition of the net assets of Dan Company, Empire Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows:

-Based on the preceding information,what amount of goodwill impairment will be recognized for this division if its fair value is determined to be $195,000?

• A) $5,000
• B) $30,000
• C) $60,000
• D) $55,000