Goodwill Impairment TestPrior to Adoption of FASB ASU 2017-04

Assume that the equity method Equity Investment account relating to a subsidiary has a reported balance of $2,950,000, including $150,000 of Goodwill. The fair value of the subsidiary is $2,750,000. The fair value of the subsidiarys individually identifiable net assets is $2,500,000. The subsidiary has only one reporting unit, which is the same as the overall entity.

For this fact set, determine whether Goodwill is impaired and, if so, the amount of impairment assuming the parent company has not yet adopted FASB ASU 2017-07. Enter the impairment amount below. If goodwill not impaired, enter zero. $Answer

Prepare the required journal entry if you determine Goodwill is impaired. If Goodwill is not impaired, select "No entry" as your answers under Description and leave the Debit and Credit answers blank (zero).

Description	Debit	Credit
AnswerAPICCommon stockDividendsEquity income from subsidiaryEquity investmentGoodwillOperating expensesRetained earningsNo entry	Answer	Answer
AnswerAPICCommon stockDividendsEquity income from subsidiaryEquity investmentGoodwillOperating expensesRetained earningsNo entry	Answer	Answer