E 1-18 Goodwill Measurement Washer Company has a reporting unit resulting from an earlier business combination. The reporting unit's current assets and liabilities are: Carrying Amount Fair Value Cash $30,000 $30,000 Inventory 70,000 100,000 Land 30,000 60,000 Buildings 210,000 230,000 Equipment 160,000 170,000 Goodwill 150,000 Notes Payable 100,000 100,000 550,000 CV Required: Determine the amount of goodwill to be reported and the amount of goodwill impairment, if any, if the fair value of the reporting unit is determined to be: a. $580,000 b. $540,000 c. $500,000 d. $460,000 E1-18 Goodwill Measurement a. Compare FV of RU to CV of RU: $580,000 > PV $550,000 CV Value of Goodwill: $15.000 Goodwill Impairment Loss - NIA b. Compare FV of Ruto CV of RU: $150,000 GW ($10,000) $140,000 $540,000 > PV $550,000 CV $540,000 PV $550.000 CV ($10,000) Reduce GW $10,000 Value of Goodwill: $140.000 _Goodwill Impairment Loss: $10.000 C. Compare FV of RU to CV of RU: $150,000 ($50,000) $100,000 $500,000 > $550,000 PV CV $500,000 P $550.000 CV ($50,000) Reduce GW $50,000 Value of Goodwill: $100.000 Goodwill Impairment Loss: $50.000 d. Compare FV of RU to CV of RU: $150,000 GW ($90,000) $60,000 S460,000 > $550,000 PV CV $460,000 PV $550.000 CV (590,000) Reduce GW $90,000 Value of Goodwill: $60.000 Goodwill Impairment Loss: $90.000