The information that follows relates to goodwill and an operating division/cash generating unit (CGU) of
Speck Company as at December 31, 2019 (their year end). Speck Company is a privately held Canadian
company that follows ASPE. Due to declining performance the Company has decided to test the
Goodwill for impairment.
		Goodwill
	Cost	$ 220,000
	NBV of operating unit/CGU (including Goodwill)	$ 1,375,000
	Undiscounted future cash flows	$ 1,605,000	*
	Discounted future cash flows (value in use)	$ 1,410,000	*
	Fair value	$ 1,320,000	*
	Costs to sell	$ 100,000	*
	Remaining useful life in years	n/a
	* - assume that these amounts relate to the entire operating unit/CGU that the goodwill has been assigned to.

a) Provide any required entries at December 31, 2019 regarding impairment for the Goodwill. If no entry is required comment on why. Supporting rough work must be shown for marks.

b) Assume that the fair value of the goodwill recovers to $1,600,000 by the end of 2020. Provide any required impairment journal entry at December 31, 2020. If no entry is required comment on why. Show your rough work for part marks.