Piri Ltd Acquired 100% of the Commons Shares of Golden Co

Multiple Choice

Piri Ltd. acquired 100% of the commons shares of Golden Co. This business combination resulted in $100,000 of goodwill. Piri allocated the goodwill to three cash-generating units. At its year-end, Piri conducts a goodwill impairment test. Which of the following statements about the impairment test is true?

A) The impairment test is applied to Golden Co. as a whole.
B) The impairment test is applied to the business combination as a whole.
C) The impairment test is applied to each of the three cash-generating units to which goodwill has been allocated.
D) Piri is not required to conduct an impairment test unless its circumstances have changed materially from its previous year.