On January 1, 20X1, Porta Corporation purchased Swick Companys net assets and assigned goodwill of $80,400 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date:

Carrying Amount Fair Value 12/31/20X3

Cash $ 14,400 $ 14,400

Inventory 56,400 71,400

Equipment 174,000 194,000

Goodwill 80,400

Accounts Payable 30,400 30,400

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.$344,000.

b.$284,000.

c.$264,000.

Amount of Goodwill Goodwill Impairment

a. ? ?

b. ? ?

c. ? ?