B) True/False Question (5 points) Pass Corporation purchased one division, Study Products, five years ago for $3 million. Pass management is now reviewing the division for purposes of recognizing an impairment. The table below lists Study Division's net assets, including the associated goodwill of $400,000 from the purchase. Items Cash & Receivables Inventory Land Equipment Goodwill Total Assets Current payables Net Assets Study Division Carrying Value Fair Market Value $100,000 $100,000 150,000 200,000 200,000 400,000 120,000 100,000 400,000 $970,000 $800,000 (200,000) (200,000) $770,000 $600,000 The fair value of the division is estimated to be $730,000 Required Answer True (T) or False (F) to the following sentences and fill-in your answers in the table on the first page. If your answer is false, give the true answer. 1. Pass Corp. determined that impairment on goodwill has occurred. 2. The amount of implied goodwill will be $150,000. 3. The impairment loss on goodwill is 250,000.