Pursuing an inorganic growth strategy, Wilson Company acquired Venus Company's net assets and assigned them to four separate reporting divisions. Wilson assigned total goodwill of $134,000 to the four reporting divisions as given below: Alpha Beta Gamma Delta Carrying value$200,000 $320,000 $370,000 $300,000 Goodwill included in carrying value 20,000 34,000 50,000 30,000 Fair value of net identifiable assets at year-end 150,000 300,000 390,000 280,000 Fair value of reporting unit at year-end 180,000 350,000 360,000 295,000 Based on the preceding information, for Gamma
A. goodwill impairment of $20,000 should be recognized at year-end.
B. goodwill impairment of $30,000 should be recognized at year-end.
C. goodwill of $40,000 should be reported at year-end.
D. no goodwill should be reported at year-end.
Answer: C
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