Homework Answers
Solution: Journal Entry:
| Account Titles and Explanation | Debit | Credit |
| No Entry | $ - | |
| $ - |
Notes:
1) Here Division`s net assets including goodwill, have a carrying amount of $ 920,000
2) Fair Value of Division is $ 1,130,000
Impairment of goodwill comes only when fair value is less than carrying amount of net assets including goodwill. But here fair value is more than carrying value. So, No need of journal entry to record impairment.
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