On January 1, 2017, Kamiah Corp. purchases 100% of Lewiston Inc. for $11.52 million. At the time of acquisition, the fair market value of Lewiston's tangible net assets (excluding goodwill) is $9.48 million. Kamiah ascribes the excess of $2.04 million to goodwill. During the year the fair value of Lewiston declines to $9.6 million and the fair value of Lewiston's tangible net assets is estimated at $8.16 million as of December 31, 2017.
a. Determine if the goodwill has become impaired and, if so, the amount of the impairment.
b. What impact does the impairment of goodwill have on Kamiah Corp's financial statements?

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The Answer of On January 1, 2017, Kamiah Corp. purchases 100% of Lewiston Inc. for $11.52 million. At the time of acquisition, the fair market value of Lewiston's tangible net assets (excluding goodwill) is $9.48 million. Kamiah ascribes the excess of $2.04 million to goodwill. During the year the fair value of Lewiston declines to $9.6 million and the fair value of Lewiston's tangible net assets is estimated at $8.16 million as of December 31, 2017.
a. Determine if the goodwill has become impaired and, if so, the amount of the impairment.
b. What impact does the impairment of goodwill have on Kamiah Corp's financial statements?