1) After doing goodwill impairment test in year 2019, the carrying value including goodwill of S Co. was: *

a) $1,401,000

b) $1,403,000

c) $1,400,000

d) $1,402,000

2) After doing goodwill impairment test in year 2018, the result was: *

a) Impairment loss of $13,000

b) No Impariment loss

c) Impairment loss of $12,000

d) Impairment loss of $10,000

On January 1, 2018, P Company acquired the net assets of S Company for $1,600,000 cash. The fair value of S Co. identifiable net assets was $1,400,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of Present value S Co. Identifiable Year of Future Cash Flows Net Assets 2018 $1,300,000 $1,200,000 2019 $1,410,000 $1,210,000 * Identifiable net assets do not include goodwill. Fair Value S Co. Identifiable Net Assets $1,110,000 $1,200,000 Use the above information to answer the following