Information about the assets of TAP Holdings is provided bel

Information about the assets of TAP Holdings is provided below: TAP purchased land on January 1, 2013 for $250 million. As of January 1, 2018, the fair value was estimated to be $290 million. TAP purchased a trademark on January 1, 2016 for $150 million. As of January 1, 2018, the fair value was estimated to be $80 million. TAP acquired a company on Jun 5, 2016 and recognized $880 million in goodwill as a result. A $140 million goodwill impairment was recognized at year end 2017. Assume a useful life of 5 years and the straight-line method for any depreciable or amortizable assets above. What is the total value of these assets reported on TAP’s balance sheet as of January 1, 2018?

A. $1,070 million

B. $890 million

C. $1,170 million

D. $1,140 million

Solution

BV Amortization WDV Land           250           250 Trademark           150                  (70)             80 Goodwill           880               (140)           740 Total        1,280               (210)        1,070 Hence option A is correct