In 2010, Nelson Communications purchased a controlling interest in Telnetco that resulted in goodwill in the 2010 consolidated financial statements of $4,500,000 There are no other intangible assets Telnetco continues to be listed on NASDAQ Near the end of 2011, Nelson estimated that the fair marke...

a The inherent risks in this writedown include A minor change in the disc ...

In 2010, Nelson Communications purchased a controlling interest in Telnetco that resulted in goodwill in the 2010

Question:

In 2010, Nelson Communications purchased a controlling interest in Telnetco that resulted in in the 2010 consolidated of $4,500,000. There are no other . Telnetco continues to be listed on NASDAQ. Near the end of 2011, Nelson estimated that the fair market value of Telnetco was $50,500,000 based on the present value of its future cash flows. Using the assistance of a professional appraisal firm, the fair market value of its net tangible assets was determined to be $46,900,000, resulting in a write-down of $900,000.
Required
a. Describe the inherent risks to this write-down.
b. Describe the audit evidence needed to evaluate the fairness of this write-down.
c. How might a specialist be of help?
Goodwill
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