Deluxe Corp. has four international divisions. One of them, Pere Products, was acquired on January 1, 2016, for £400,000,000, and recorded goodwill of £50,000,000 as a result of that purchase. At December 31, 2016, Pere Products had a recoverable amount of £375,000,000. The total book value of Pere Products was £355,000,000 (including goodwill). 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:D
Deluxe Corp. has four international divisions. One of them, Pere Products, was acquired on January 1, 2016, for £400,000,000, and recorded goodwill of £50,000,000 as a result of that purchase. At December 31, 2016, Pere Products had a recoverable amount of £375,000,000. The total book value of Pere Products was £355,000,000 (including goodwill). 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-