Goodwill
Response to the following problem:
Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha Company recorded goodwill of $100,000 related to the purchase. Since that time, the company has not considered the goodwill to be impaired. However, at the end of 2010, Blaha Company decides to evaluate the goodwill for impairment because of technological changes in the industry. The subsidiary has a book value (including the goodwill) of $900,000. Blaha Company estimates that the fair value of the subsidiary is $720,000, of which it allocates $660,000 to the subsidiary's identifiable assets and liabilities.
Required
Prepare the journal entry (if any) for Blaha Company to record the impairment of its goodwill at the end of 2010.