Question 3

Blue Spruce Corporation purchased Larkspur Company 3 years ago and at that time recorded goodwill of $420,000. The Larkspur Divisions net assets, including the goodwill, have a carrying amount of $840,000. The fair value of the division is estimated to be $1,000,000. Prepare Blue Spruce' journal entry, if necessary, to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List debit entry before credit entry.)

Account Titles and Explanation	Debit	Credit
enter an account title	enter a debit amount	enter a credit amount
enter an account title	enter a debit amount	enter a credit amount