2011: Impairment Loss—Goodwill 15,000 Goodwill 15,000

2012: No entry

2013: Impairment Loss—Goodwill 35,000 Goodwill 35,000 FASB ASC paragraph 350-20-45-1 specifies the presentation of goodwill in the balance sheet and income statement (if impairment occurs) as follows:

The aggregate amount of goodwill should be a separate line item in the balance

sheet. The aggregate amount of losses from goodwill impairment should be shown as a

separate line item in the operating section of the income statement unless some of the impairment is associated with a discontinued operation (in which case it is shown net-of-tax in the discontinued operation section).

In a period in which an impairment loss occurs, FASB ASC paragraph 350-20-45-2 mandates the following disclosures in the notes:

(1) A description of the facts and circumstances leading to the impairment;

(2) The amount of the impairment loss and the method of determining the fair value of the reporting unit;

(3) The nature and amounts of any adjustments made to impairment estimates from earlier periods, if significant.

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