In Performing Impairment Test for Goodwill, the Company Had the Following

Short Answer

In performing impairment test for goodwill, the company had the following 20X6 and 20X7 information available. $\begin{array}{lrr} & 20 \mathrm{X} 6 & 20 \mathrm{X} 7 \\\text { F air value of the reporting unit } & \$ 350,000 & \$ 400,000 \\\text { Net book value (including } \$ 50,000 \text { goodwill) } & \$ 360,000 & \$ 380,000\end{array}$ Assume that the carry value of the identifiable assets are a reasonable approximation of their fair values. Based upon this information what are the 20X6 and 20X7 adjustment to goodwill, if any?