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 liabilities 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 impairment be required 3 Assume that Blaha uses IIFRS and has estimated the recoverable amount of Husker (which qualifies as a cash generating unit) to be $743,000 Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2019 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 liabilities 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 impairment be required 3 Assume that Blaha uses IIFRS and has estimated the recoverable amount of Husker (which qualifies as a cash generating unit) to be $743,000 Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2019

Question

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 liabilities  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 impairment be required  3  Assume that Blaha uses IIFRS and has estimated the recoverable amount of Husker (which qualifies as a cash generating unit) to be $743,000  Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2019  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 liabilities  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 impairment be required  3  Assume that Blaha uses IIFRS and has estimated the recoverable amount of Husker (which qualifies as a cash generating unit) to be $743,000  Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2019

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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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