A Company Reports Total Goodwill of $4,000 Required
A

A company reports total goodwill of $4,000. On December 31, 2020, the following information is available for the reporting units of a company:
$$\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { North American } \\\text { Division }\end{array} & \begin{array} { c } \text { International } \\\text { Division }\end{array} \\\hline \text { Book value of goodwill } & \$ 1,000 & \$ 3,000 \\\hline \text { Fair value of division } & 8,000 & 6,000 \\\hline \text { Book value of division } & 8,700 & 5,800 \\\hline\end{array}$$ Required
a. Management determines that it is more likely than not that book value exceeds fair value for both reporting units. What is the amount of goodwill impairment loss for 2020, following U.S. GAAP?
b. Now assume the company follows IFRS and allocates the $4,000 in goodwill to the following cash generating units.