porter corporation acquired stewart corporation on january 1 2014 at a cost of 75 mi 4372856

Porter Corporation acquired Stewart Corporation on January 1, 2014, at a cost of $75 million. Stewart consisted of three identifiable reporting units, designated X, Y, and Z. Relevant data for the acquisition are as follows: In addition, existing reporting unit J is expected to benefit from the acquisition, such that its fair value increases by $20,000,000. Unit J has a carrying value of $70,000,000. Assume qualitative assessment at December 31, 2014, indicates it is more likely than not that book value exceeds fair value for all reporting units, and Porter proceeds with the quantitative test of goodwill impairment. On December 31, 2014, the following amounts were estimated for the four reporting units: Required a. Calculate the total goodwill and its allocation to business units at January 1,2014. b. Calculate any impairment of goodwill at December 31,2014. View Solution:
Porter Corporation acquired Stewart Corporation on January 1 2014 at

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