Infinity Corporation Acquired 80 Percent of the Common Stock of an Egyptian

question 52

Multiple Choice

Infinity Corporation acquired 80 percent of the common stock of an Egyptian company on January 1,2008.The goodwill associated with this acquisition was $18,350.Exchange rates at various dates during 2008 follow: Goodwill suffered an impairment of 20 percent during the year.If the functional currency is the Egyptian Pound,how much goodwill impairment loss should be reported on Infinity's consolidated statement of income for 2008?

• A)$3,670
• B)$3,700
• C)$3,680
• D)$3,690

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