Kingston Corporation has $102 million of goodwill on its books from the 2019 acquisition of Reliant Motors. At the end of its 2021 fiscal year, management has provided the following information for its required goodwill impairment test ($ in millions) Fair value of Reliant (approximates fair value less costs to sell) Fair value of Reliant's net assets (excluding goodwill) Book value of Relant's net assets (including goodwill) Present value of estimated future cash flows Assuming that Reliant is considered a cash-generating unit for IFRS, the amount of goodwill impairment loss that Kingston should recognize according to FRS is $33 milion $59 milion O 50 $ 648 607 707 674 $41 min
Kingston Corporation has $102 million of goodwill on its books from the 2019 acquisition of Reliant Motors. At the end of its 2021 fiscal year, management has provided the following information for its required goodwill impairment test ($ in millions) Fair value of Reliant (approximates fair value less costs to sell) Fair value of Reliant's net assets (excluding goodwill) Book value of Relant's net assets (including goodwill) Present value of estimated future cash flows Assuming that Reliant is considered a cash-generating unit for IFRS, the amount of goodwill impairment loss that Kingston should recognize according to FRS is $33 milion $59 milion O 50 $ 648 607 707 674 $41 min
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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