4110- 1.3

un January 1, 2UX1, Porta Corporation purchased Swick Company's net assets and assigned goodwill ot $8,6UU to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date Carrying Amount Fair Value Cash Inventory Equipment Goodwi Accounts Payable s 14,600 14,600 71,600 196,000 56,600 176,000 80,600 30,600 30,600 Required On December 31, 20X3, Porta must test goodwill for impairment. Determine the amount of goodwill to be reported for Division K and the amount of goodwill impairment to be recognized, if any, if Division K's fair value is determined to be a. $346,000 b. $286,000 C. $266,000 Amount of Goodwill Goodwill Impairment