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Business, 15.08.2021 14:30 Lindy4886

At the year-end, an impairment review is being conducted on a 80%-owned subsidiary. At the date of the impairment review the carrying value of the subsidiary’s net assets were $2,880 and the gross goodwill (Full Goodwill method used) is $2,688 and the recoverable amount of the subsidiary $5,280 The amount of goodwill impairment that will appear in the operating expenses for the group is?

Select one:

a. No impairment is recognized as recoverable amount is higher than the Carrying Value of subsidiary including goodwill

b. $288

c. $352

d. None of the above

e. $244.8

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