Chapter 2, Problem 10E

A.

To determine

Ascertain the amount of goodwill impairment using FASB’s simplified approach.

B.

To determine

Prepare the journal entries required each year to record the goodwill impairment.

C.

To determine

Explain the manner in which the goodwill must be presented on the balance sheet and the income statement in each year.

D.

To determine

State the additional information that must be disclosed if goodwill is impaired.

E.

To determine

Ascertain the amount of goodwill impairment, if the firm did not adopt the new simplified rules on goodwill impairment and uses the two-step approach.