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Business, 19.02.2022 23:20 jessicaaaamartin

Identifiable Intangibles and Goodwill, U. S. GAAP International Foods, a U. S. company, acquired two companies in 2019. As a result, its consolidated financial statements include the following acquired intangibles:

Intangible AssetDate of AcquisitionFair Value at Date of AcquisitionUseful Life
Customer relationshipsJanuary 1, 2019$4,000,0004 years
Favorable leaseholdsJune 30, 20198,000,0005 years
Brand namesJune 30, 201918,000,000Indefinite
GoodwillJanuary 1, 2019500,000,000Indefinite
Goodwill was assigned to the following reporting units:

Asia$100,000,000
South America150,000,000
Europe250,000,000
Total$500,000,000
It is now December 31, 2020, the end of International Foods’ accounting year. No impairment losses were reported on any intangibles in 2019. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indefinite-life intangibles. Additional information at December 31, 2020 is as follows:

Intangible AssetSum of Future Expected Undiscounted Cash FlowsSum of Future Expected Discounted Cash Flows
Customer relationships$1,200,000$900,000
Favorable leaseholds6,000,0004,400,000
Brand names14,000,0007,000,000
Reporting UnitUnit Carrying ValueUnit Fair Value
Asia$300,000,000$400,000,000
South America200,000,000350,000,000
Europe600,000,000500,000,000
Required

Compute 2020 amortization expense and impairment losses on the above intangibles, following U. S. GAAP.

Enter answers in millions, using decimal places when applicable.

(in millions)
Amortization expense - identifiable intangibles$
Impairment losses - identifiable intangibles
Goodwill impairment loss
Total$

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