Goodwill Impairment: Information has been collected regarding Black Company€™s cash- generating unit that includes goodwill. At 31 December 20X5, the assets of the Black Company€™s cash- generating unit are shown as follows (in millions) on the company€™s balance sheet:

An impairment test indicates that the fair value of Black Company€™s cash- generating unit€™s assets is $ 1,800 million. The assets are not separable€” they must be operated or sold together as a group.

Required:
Prepare an adjusting journal entry to record the impairment. If the impairment was reversed, how would the reversal be accounted for among the assets in the cash- generatingunit?

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Cost Accumulated Depreciation Net Book Value Goodwill Equipment Building Patent rights 400 1,400 2,100 800 600 80 1,480 400 600 1,500 120 2,620 200 $4,100