The impairment loss is the difference between carrying value and fair value, but shouldn’t it be multiplied by .325? To reflect the impairment loss the investor is recognizing or is the full impairment recognized even if investor owns only 32.5%
No because the question states those values ($940,000 and $1,264,510) already REFLECT Suburban’s investment.
Makes sense, I’m just brain dead right now thanks
But as per USGAAP its a two step process. Step 1: Carrying amount > Fair Value ==> impairment happened Step 2: Impairment loss = Carrying value of good will - Implied value of good will I believe the answer is wrong. Any comments ?