Twilight Corporation Acquired End-Of-The-World Products on January 1, 2014 for $6,400,000

Twilight Corporation acquired End-of-the-World Products on January 1, 2014 for $6,400,000, and recorded goodwill of $1,200,000 as a result of that purchase. At December 31, 2015, the End-of-the-World Products Division had a fair value of $5,440,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $4,640,000 at that time. What amount of loss on impairment of goodwill should Twilight record in 2015?

A) $ -0-
B) $400,000
C) $560,000
D) $960,000

Correct Answer:

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