In 2014, alliant corp acquired centerpoint inc. for $300 million, of which $50 million was allocated to goodwill. at the end of 2016, management has provided the following information for a required goodwill impairment test: fair value of centerpoint, inc. $220 millionfair value of centerpoint's net assets (excluding goodwill) $200 millionbook value of centerpoint's net assets (including goodill) $250 millionrequired: 1. determine the amount of the impairment loss2. repeat repairment 1 assuming that the fair value of centerpoint is $270 million***consider ifrspart tworefer to the situation described above, requirement 1. alliant prepares its financial statements according to ifrs, and centerpoint is considered a cash0generating unit. assume that centerpoints fair value of $220 million approximates fair value less costs to sell and that the present calue of centerpoint's estimated future cash flows is $225 million. requireddetermine the amountof goodwill impairment loss alliant should recognize.

Consider a small island country whose only industry is weaving. the following table shows information about the small economy in two different years. complete the table by calculating physical capital per worker as well as labor productivity. hint: recall that productivity is defined as the amount of goods and services a worker can produce per hour. in this problem, measure productivity as the quantity of goods per hour of labor. year physical capital labor force physical capital per worker labor hours output labor productivity (looms) (workers) (looms) (hours) (garments) (garments per hour of labor) 2024 160 40 1,800 14,400 2025 180 60 3,900 23,400

Daniel owns 100 shares of abc corporation's common stock. abc uses the fair value option, and recent declines in the firm's credit rating have caused the value of the firm's outstanding bonds payable to drop by 10%. daniel feels this is good news, but he wants to know what you think about the situation. which of the following represents your best response? a : "this situation may be positive for you in that the change in abc's credit standing indicates that the value of the firm's assets is likely increasing. however, the drop in bond value may negate any positive effects on your bottom line, because it means your claim on the firm's assets is simultaneously decreasing." b : "actually, this is bad news all around. the drop in the value of abc's bonds payable means shareholders' claims on the firm's assets have decreased. moreover, abc's declining credit rating means that the firm's assets are probably also dropping in value, thus magnifying your losses even more." c : "on the surface, this seems like good news because it means your claim on the firm's assets has increased. however, the drop in creditworthiness may also indicate that abc's assets are declining in value, thus offsetting any gains associated with the drop in bonds payable." d : "you're right! this is good news because it means that abc's debtholders have a decreased claim on the firm's assets. as a result, the firm's existing shareholders"like you"have seen their claim on the firm's assets increase."

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?