Goodwill Impairment Test Assume that the Equity Investment account relating to a subsidiary has a reported balance of $5 million, including $525,000 of Goodwill. You currently value that subsidiary at $4.5 million, and estimate that the fair value of the subsidiary's net assets is $4.3 million.

a. Should you perform a test for potential impairment of Goodwill?

b. If so, perform the impairment test (s) and conclude whether or not Goodwill is impaired? (If Goodwill is not impaired, select N/A as your answer.)

c. Prepare the required journal entry if you find the Goodwill asset to be impaired. (If Goodwill is not impaired, select N/A as your journal entry answers.)