Deluxe Corp. has four international divisions. One of them, Qaram Corp., was acquired on January 1, 2016, for ₨600,000,000, and recorded goodwill of ₨70,000,000 as a result of that purchase. At December 31, 2016, Qaram had a book value (including goodwill) of ₨375,000,000. The total recoverable amount of Qaram was ₨355,000,000. What amount of loss on impairment of goodwill should Deluxe record in 2016?
A. $45,000,000
B. $25,000,000
C. $20,000,000
D. -0-
Answer:C
Deluxe Corp. has four international divisions. One of them, Qaram Corp., was acquired on January 1, 2016, for ₨600,000,000, and recorded goodwill of ₨70,000,000 as a result of that purchase. At December 31, 2016, Qaram had a book value (including goodwill) of ₨375,000,000. The total recoverable amount of Qaram was ₨355,000,000. What amount of loss on impairment of goodwill should Deluxe record in 2016?
A. $45,000,000 B. $25,000,000 C. $20,000,000 D. -0-