• The goodwill of $20,000 on Illini's 12/31/20X0 Balance Sheet is related to a subsidiary of Illini (i.e., a reporting unit). At the end of 20X1, there is no indication that it is more likely than not the goodwill may be impaired. However, at the end of 20X2, evidence indicates that it is more likely than not that the fair value of the reporting unit is less than its book value.?
• Further investigation reports that:
• (1) The book value of the reporting unit's net assets on 12/31/20X2 is $48,000, including the $20,000 good will?
• (2) The estimated fair value of the reporting unit on the same day is $45,000?
• (3) The fair value of all of the reporting unit's identifiable tangible and intangible assets, not including the goodwill, is estimated to be $30,000?

Project 1.4 Part 3 Balance Sheet

Date	Account Name		Debit	Credit
12/31/20X2	Loss on goodwill		[A]
		Goodwill		[B]