Weaver Corporation purchased the Merando Company three years…
Weaver Corporation purchased the Merando Company three years ago and, at that time, recorded goodwill of $720,000. 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. The journal entry necessary to record an impairment of the goodwill (if any) includes: