s 1, 2 and 3 inter-relate. #1 is Anton Company as of January 1, Year 1. #2 shows the situation on December 31, Year 1 (after 1 year of ownership). And #3 is as of December 31, Year 2 (after 2 years of ownership). Question 1 Anton Company purchased the Hair Company on January 1, Year 1 for $600,000. The fair market value of the net assets was $400,000. What is the amount of goodwill on the date of purchase? It was established as a separate reporting unit. Question 2 On December 31, Year 1, the book value of the Hair reporting unit was $500,000 (including goodwill). The fair value of the net assets exclusive of goodwill was $340,000. The fair value of the reporting unit is estimated to be $540,000. Is goodwill impaired? If so, what adjustment would be needed? Question 3 On December 31, Year 2, the book value of the Hair reporting unit was $450,000 (including goodwill). The fair value of the net assets exclusive of goodwill was $340,000. The fair value of the reporting unit is estimated to be $400,000. Is goodwill impaired? If so, what adjustment would be needed