Assume, further, that the acquisition was consummated on October as described above. However, by the end of
Swifty was concerned that the fair values of one or both of the acquired units had deteriorated. To test for impairment, Swifty
decided to measure good will impairment using the present value of future cash flows to estimate the fair value of the reporting
units Sheffield and Sarasota Swifty accumulated the following data:
Identifiable Net Assets do not include goodwill.
Prepare the journal entry, if needed, to record goodwill impairment at December Use FASB's simplified approach to test
for goodwill impairment assume that the qualitative test is satisfied or bypassedCredit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the
amounts. List debit entry before credit entry.
Account Titles and Explanation
Debit
Credit
Impairment Loss
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