Accounting Problem

Topic: Write Down Goodwill

Question

On the Unadjusted Trial Balance at December 31, 2020, goodwill was a Debit of $675,000

Goodwill was a result of a combination of activities in 2019. After an analysis, the following

information relating to goodwill was determined:

Value in use

$602,000

Fair value less cost to sell

$590,000

Provide any Adjusting Journal Entries pertaining to the write-down of goodwill for the year-ended December 31, 2020. Show all relevant calculations