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LL LLLLLLLL B12-19 LO 12.5 SHOW ME HOW I Goodwill Several years ago, Blaha Company...

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LL LLLLLLLL B12-19 LO 12.5 SHOW ME HOW I Goodwill Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha recorded aha recorded goodwill of $100.000 related to the purchase. Since that time, the company has not consid- ered the goodwill to 1 awill to be impaired. However, at the end of 2016, Blaha decides to evaluate the goodwill for impair- ment because of technological changes in the industry. Husker (which is considered a reporting unit of Blaha) has a book value ncluding the goodwill) of $800,000. Blaha estimates that the fair value of Husker is $720,000, of which it allocates $660,000 to Husker's identifiable assets and liabilities. Required: 1. Prepare the journal entry (if any) for Blaha to record the impairment of its goodwill at the end of 2016. 2. Assume that Blaha uses IFRS and has estimated the recoverable amount of Husker (which qualifies as a cash-generating-unit) to be $740,000. Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2016

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