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Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha recorded goodwill of $103,000 related to the purchase. Since that

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Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha recorded goodwill of $103,000 related to the purchase. Since that time, the company has not considered the goodwill to be impaired. However, at the end of 2019, Blaha decides to evaluate the goodwill for impairment because of technological changes in the industry. Husker (which is considered a reporting unit of Blaha) has a book value (including the goodwill) of $772,500. Blaha estimates that the fair value of Husker is $710,000, of which it allocates $604,000 to Husker's identifiable assets and Eabilities. Required: 1. Prepare the journal entry (if any) for Blaha to record the impairment of its goodwill at the end of 2019. 2. Next Level Would any additional impaliment be required? 3. Assume that Blaha uses IFAS and has estimated the recoverable amount of Husker (which qualifies as a cash-generating-unit) to be $743,000. Prepare the joumal entry for Blaha to record the impairment of its goodwill at the ond of 2019 . Instructions Chart of Accounts Se the evi CHART OF ACCOUNTS ha Blaha Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Recelvable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 181 Equipment 511 Insurance Expense 184 Goodwill 512 Utilities Expense 189 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 540 Interest Expense 211 Accounts Payable 541 Depreciation Expense 231 Salaries Payable 559 Miscellaneous Expenses 250 Unearned Revenue 891 Impairment Loss on Goodwill 261 Income Taxes Payable 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings 1. Prepare the journal entry (if any) for Blaha to record the impairment of its goodwill on December 31 . General Joumal instructions 3. Assume that Blaha uses IFRS and has estimated the recoverabletsmount of Husker (which qualifies as a cash-generating-unit) to be $743,000. Propare the joumal entry (if any) for Blaha to record the impairment of its goodwill on Decomber 31 . Goneral Joumal instructions

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