Parker Company purchased Eynon Corporation in 2009, recording $80,000 in goodwill at the time of purchase. In January, 2014, Parker decides that the value of the goodwill has declined substantially due to local economic and demographic changes. Parker estimates that the true value of the goodwill should only be $30,000. Which of the following shows the effect of this situation on the financial statements?

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The Answer of Parker Company purchased Eynon Corporation in 2009, recording $80,000 in goodwill at the time of purchase. In January, 2014, Parker decides that the value of the goodwill has declined substantially due to local economic and demographic changes. Parker estimates that the true value of the goodwill should only be $30,000. Which of the following shows the effect of this situation on the financial statements?

Parker Company Purchased Eynon Corporation in 2009, Recording $80,000 in Goodwill