home / study / business / accounting / accounting questions and answers / on january 1, 20x1, porta corporation purchased swick company's.. Question: On January 1, 20X1, Porta Corporation purchased Swick Co... On January 1, 20X1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of $80,900 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division Kon the acquisition date: Carrying Amount Fair Value Cash $ 14,900 $ 14,900 Inventory 56,900 71,900 Equipment 179,000 199,000 Goodwill 80,900 Accounts Payable 30,900 30,900 Required: On December 31, 20X3, Porta must test goodwill for impairment. Determine the amount of goodwill to be reported for Division K and the amount of goodwill impairment to be recognized, if any, if Division K's fair value is determined to be 1. $349,000. 2. $289,000. 3. $269,000