Case Analysis
A) Had FAS 142 not been in effect, allowing goodwill to be amortizable, estimate the amount of amortization that would be expensed in 2007 using a straight line method over 40 years, had goodwill not been impaired.
B): In 2008, Talbots decided to discontinue operations of J.Jill. Briefly explain what will happen to the estimated future amortization expenses as a result of Talbot's decision to discontinue operations of their J. Jill acquisition. Use Note 4 of Talbots 10-K to inform you.