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On September 1, 2020, Flounder Corporation acquired Tunneling Limited for a cash payment of $864,700....

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Accounting

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On September 1, 2020, Flounder Corporation acquired Tunneling Limited for a cash payment of $864,700. At the time of purchase, Tunneling's statement of financial position showed assets of $905,000, liabilities of $462,400, and owners' equity of $442,600. The fair value of Tunneling's assets is estimated to be $1,165,000. Assume that Flounder Corporation is a public company and that the goodwill was allocated entirely to one cash- generating unit (CGU). Two years later, information about the CGU is as follows: carrying amount $3,476,500; value in use $3,401,200; and the fair value less costs to sell $3,296,200. Determine if the goodwill is impaired. Goodwill is impaired . Calculate the goodwill loss on impairment, if any. (If goowill is not impaired, please enter O.) Goodwill impairment loss $

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