On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,000 cash. The fair value of Saabs 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:

On January 1, 2013, the acquisition date, what was the amount of goodwill acquired, if any?

For each year determine the amount of goodwill impairment, if any, and prepare the journal entry needed each year to record the goodwill impairment (if any).

Present Value Carry Value Fair Value of SAAB's of SAAB's of Future Cash Flows Net Assets Net Assets Year S340,000 400,000 $330,000 2014 S 345,000 S 325,000 400,000 $320,000 2015 350,000 $300,000 2016