12-131Weaver Corporation purchased Merando Company 3 years ago and at that time recorded goodwill of $600,000. The Division's net assets, including the goodwill, have a carrying amount of $1,200,000. The fair value of the division is estimated to be $1,100,000 and implied goodwill is $525,000. Prepare Weaver's journal entry, if necessary, to record impairment of the goodwill.

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The Answer of 12-131Weaver Corporation purchased Merando Company 3 years ago and at that time recorded goodwill of $600,000. The Division's net assets, including the goodwill, have a carrying amount of $1,200,000. The fair value of the division is estimated to be $1,100,000 and implied goodwill is $525,000. Prepare Weaver's journal entry, if necessary, to record impairment of the goodwill.

12-131Weaver Corporation Purchased Merando Company 3 Years Ago and at That