Hello,I need some help with the problem:At the beginning of 2011, Metatech Inc. acquired Allison Technology Corporation for $600 million. The followings are the fair value and book value of assets acquired and liabilities assumed:Fair value of assets and liabilities assumed:$410 million150 million40 million100 millionBook value of assets and liabilities assumed:$450 million130 million30 million150 millionThe plant and equipment are depreciated over a 10-year useful life on a straight-line basis. There is no estimated residual value. The patent is estimated to have a 5-year useful life, no residual value, and is amortized using the straight-line method.At the end of 2013, a change in business climate indicated to management that the assets of Ellison might be impaired. The following amounts have been determined:Plant and equipment:$80 million60 millionPatent:$20 million13 millionGoodwill: $450 million390 million470 millionRequired:A). Determine the amount of goodwill that resulted from the Ellison Technology Corporation acquisition at the beginning of 2011. B). Calculate the book value of the plant and equipment and patent at the end of 2013. Plant and equipment: Patent: C)Determine the amount of any impairment loss to be recorded, if any, for the three assets and prepare the journal entry to record the loss. Plant and equipment: Patent: Goodwill:
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