Read the article below:

http://www.businessinsider.com/yahoo-could-write-off-entire-goodwill-value-of-tumblr-2016-2

Click on the its annual 10-K filing link inside the article to read more on Yahoos Tumblr acquisition in 2013 (Hint: Focus on Note 4 Acquisitions and Dispositions, and Note 5 Goodwill/Goodwill Impairment Testing).

1. Read Sections 350-20-35-1 to 350-20-35-1-3 in the FASB Codification. If an entity chooses the Qualitative Assessment and determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, should the entity impair goodwill? Refer to the specific FASB paragraph for your answer.

2. Did Yahoo use the Qualitative Assessment in 2015? Does this choice violate GAAP? Refer to the specific FASB paragraph for your answer.

3. What is the total market capitalization of Yahoo, today? (Hint: Look this information up using a finance portal, such asyou guessed it!finance.yahoo.com)

4. How many percentage points do you expect Yahoo shares to tumble again if Yahoo impaired its Tumblr goodwill today? Assume that investors will be fully surprised with this impairment and so they will regard full the impairment charge as their investment loss?