Computing Impairment of Goodwill

Dow Corporation has assembled the following information for one of its divisions on December 31, 2020.

	Fair Value	Book Value
Total identifiable assets (exclusive of goodwill)		$3,600,000
Goodwill		300,000
Liabilities		1,500,000
Fair value of the division.	$2,325,000

a. Determine the impairment loss (if any) for the Dow Corporation division.

Note: Do not use a negative sign with your answer.

b. How would your answer change if the fair value of total identifiable assets (exclusive of goodwill) were $2,475,000 instead?