On January 1, 20X1, Porta Corporation purchased Swick Companys net assets and assigned goodwill of $80,000 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date:

	Carrying Amount			Fair Value
Cash	$	14,000		$	14,000
Inventory		56,000			71,000
Equipment		170,000			190,000
Goodwill		80,000
Accounts Payable		30,000			30,000

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 Ks fair value is determined to be

1. $340,000.
2. $280,000.
3. $260,000.

Amount of Goodwill Goodwill Impairment

a.

b.

c.