Four years ago, Trudy Trumpet Co., a firm specializing in musical instrument manufacturing in the Midwest, acquired all of the voting stock of Conservatory Company, a maker of fine Pacific Redwood reeds. At that time, Trudy recognized $500,000 of goodwill. All of this amount is assigned to Conservatory, a reporting unit that is not integrated with the other activities of the consolidated entity. In the current year, the controller for Trudy Trumpet reviewed an analyst's data and was concerned about the following: Carrying amounts of Conservatory's net assets, including goodwill $2,400,000 Conservatory's fair value 1,900,000 Fair value of Conservatory's identifiable net assets (excluding goodwilly 1,500,000 Accordingly, Trudy chose to forgo the qualitative assessment of goodwill. Instead, it directly tested goodwill for impairment. Indicate the journal entry, if any, necessary for the appropriate treatment of Conservatory's goodwill. To prepare each required journal entry: . Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all. Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. . . account. An account may be used once, more than once, or not at all. Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. If no journal entry is needed, check the "No entry required" box at the top of the table as your response. No Entry Required Account Name Debit Credit 123 123 123 123 LU! 123 123 123 123 !!! E 123 123 Four years ago, Trudy Trumpet Co., a firm specializing in musical instrument manufacturing in the Midwest, acquired all of the voting stock of Conservatory Company, a maker of fine Pacific Redwood reeds. At that time, Trudy recognized $500,000 of goodwill. All of this amount is assigned to Conservatory, a reporting unit that is not integrated with the other activities of the consolidated entity. In the current year, the controller for Trudy Trumpet reviewed an analyst's data and was concerned about the following: Carrying amounts of Conservatory's net assets, including goodwill $2,400,000 Conservatory's fair value 1,900,000 Fair value of Conservatory's identifiable net assets (excluding goodwilly 1,500,000 Accordingly, Trudy chose to forgo the qualitative assessment of goodwill. Instead, it directly tested goodwill for impairment. Indicate the journal entry, if any, necessary for the appropriate treatment of Conservatory's goodwill. To prepare each required journal entry: . Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all. Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. . . account. An account may be used once, more than once, or not at all. Enter the corresponding debit or credit amount in the associated column. Round all amounts to the nearest whole number. Not all rows in the table might be needed to complete each journal entry. If no journal entry is needed, check the "No entry required" box at the top of the table as your response. No Entry Required Account Name Debit Credit 123 123 123 123 LU! 123 123 123 123 !!! E 123 123
