home / study / business / accounting/accounting questions and answers / on january 1, 2013, porsche company acquired the net assets of saab co Question: On January 1, 2013, Porsche Company acquired the net assets.. On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,000 cash. The fair value of Saab's identifiable net assets was $375,000 on this date. Porsche Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: 5 bookmarks) Carrying Value of Present value Saab's Identifiable Fair Value Saab's Identifiable Year of Future Cash Flows I Net Assets Net Assets 2014 $400,000 $330,000 $340,000 2015 $400,000 $320,000 345,000 2016 $350,000 $300,000 325,000 *Identifiable net assets do not include goodwill. Required: Part A: For each year determine the amount of goodwill impairment, if any. Part B Prepare the journal entries needed each year to record the goodwill impairment (if any) on Porsche's books from 2014 to 2016: Part C How should goodwill (and its impairment) be presented on the balance sheet and the income statement in each year? Part D If goodwill is impaired, what additional information needs to be disclosed? Expert Answer