Local Craft Designs, Inc., an IFRS reporter, reported goodwill at $ 600,000 related to its Central Avenue

Question:

Local Craft Designs, Inc., an IFRS reporter, reported at $ 600,000 related to its Central Avenue Division. The fair value less costs to sell Central Avenue is $ 2,500,000. Its value in use is $ 2,550,000. The firm reports the Central Avenue’s carrying value of the net assets, excluding good-will, at $ 2,100,000. Determine if is impaired and prepare any journal entry necessary to record the impairment loss. Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...