Deluxe Corp. has four international divisions. One of them, RohrSchockt Inc., was acquired on January 1, 2016, for €700,000,000, and recorded goodwill of €80,000,000 as a result of that purchase. At December 31, 2016, RohrSchockt had value in use of €635,000,000 and a book value (including goodwill) of €675,000,000. The total fair value of RohrSchockt was €650,000,000. What amount of loss on impairment of goodwill should Deluxe record in 2016?
A. $40,000,000
B. $25,000,000
C. $15,000,000
D. -0-
Answer:C
Deluxe Corp. has four international divisions. One of them, RohrSchockt Inc., was acquired on January 1, 2016, for €700,000,000, and recorded goodwill of €80,000,000 as a result of that purchase. At December 31, 2016, RohrSchockt had value in use of €635,000,000 and a book value (including goodwill) of €675,000,000. The total fair value of RohrSchockt was €650,000,000. What amount of loss on impairment of goodwill should Deluxe record in 2016?
A. $40,000,000 B. $25,000,000 C. $15,000,000 D. -0-