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Assume, further, that the acquisition was consummated on October 1, 2024, as described above. However, by the end of 2025 , Blue Spruce was concerned
Assume, further, that the acquisition was consummated on October 1, 2024, as described above. However, by the end of 2025 , Blue Spruce was concerned that the fair values of one or both of the acquired units had deteriorated. To test for impairment, Blue Spruce decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting units (Ayayai and Concord). Blue Spruce accumulated the following data: "Identifiable Net Assets do not include goodwill. Prepare the journal entry, if needed, to record goodwill impairment at December 31, 2025. Use FASB's simplified approach to test for goodwill impairment (assume that the qualitative test is satisfied or bypassed). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) s: 0 of 2 used
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