Homework Answers
| The impairment of goodwill will occur if the fair value of division ($750,000) is less than carrying value of the division of $800,000. The impairment loss would be recorded by the amount of difference between the recorded value of goodwill and the implied value of goodwill. | ||
| Account titles and explanation | Debit | Credit |
| Loss on impairment (430000-376000) | $ 54,000 | |
| Goodwill | $ 54,000 | |
| To record impairment of the goodwill | ||
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