Regular Corp. has four divisions. One of them, Yulon Products, was acquired on January 1, 2016, for $80,000,000, and recorded goodwill of $9,000,000 as a result of that purchase. At December 31, 2017, Yulon Products had a fair value (including goodwill) of $66,000,000. The book value of the company’s net assets (without goodwill) at December 31, 2017 was $77,000,000. For 2017, Regular reported a loss on impairment of goodwill of $7,000,000. What was the fair value of the company’s net assets (without goodwill) at December 31, 2017?
A. $73,000,000
B. $68,000,000
C. $64,000,000
D. $59,000,000
Answer:C
Regular Corp. has four divisions. One of them, Yulon Products, was acquired on January 1, 2016, for $80,000,000, and recorded goodwill of $9,000,000 as a result of that purchase. At December 31, 2017, Yulon Products had a fair value (including goodwill) of $66,000,000. The book value of the company’s net assets (without goodwill) at December 31, 2017 was $77,000,000. For 2017, Regular reported a loss on impairment of goodwill of $7,000,000. What was the fair value of the company’s net assets (without goodwill) at December 31, 2017?
A. $73,000,000 B. $68,000,000 C. $64,000,000 D. $59,000,000