Instructions Grier purchased Walters Company several years ago. Walters become a reporting unit of Griers. At the end of 2020, Grier had a net book value of $1.6 million which includes $400,000 of goodwill. A goodwill impairment test is done as part of the year-end closing process. Grier estimates the fair value of Walters to be $1.4 million. The fair value of Walters identifiable net assets, excluding goodwill, is $13 million. Required: 1. Determine if goodwill should be impaired. 2. Prepare the journal entry required for the impairment, if necessary Chart of Accounts ASSETS 111 Cash CHART OF ACCOUNTS Grier General Ledger REVENUE 411 Sales Revenue General Ledger ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Equipment 184 Goodwill 189 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expense 891 Impairment Loss on Goodwill 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings First Question 1. Determine if goodwill should be impaired. Yes O No General Journal 2. Prepare the journal entry required for the impairment, if necessary on December 31. General Journal 2. Prepare the journal entry required for the impairment, if necessary on December 31. General Journal Instructions 2 GENERAL JOURNAL DATE ACCOUNT TITLE PAGE 1 POST. REF DEBIT CREDIT