On January 1, 20X1, Porta Corporation purchased Swick Companys net assets and assigned goodwill of $82,500 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date:

	Carrying Amount	Fair Value
Cash	$ 16,500	$ 16,500
Inventory	58,500	73,500
Equipment	195,000	215,000
Goodwill	82,500
Accounts Payable	32,500	32,500

Required:

On December 31, 20X3, Porta must test goodwill for impairment. Assume that the carrying value of the goodwill has not changed since 20X1. 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

A. $365,000.

B. $305,000.

C. $285,000.

	amount of goodwill	goodwill impairment
a
b
c