Stanvid Company Provided the Following Information:
Fair Value of the Reporting

question 64

Essay

Stanvid Company provided the following information:
Fair value of the reporting unit, including goodwill $\quad$ $\quad$ $1,400,000
Fair value of the reporting unit, excluding goodwill $\quad$ $\quad$ $1,200,000
Book value of reporting unit, excluding goodwill $\quad$ $\quad$ $\quad$ $1,000,000
Add: Carrying value of goodwill $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 350,000
Carrying value of the reporting unit, including goodwill $\quad$ $\quad$ $1,350,000

The qualitative assessment of goodwill is completed and it is more likely than not that goodwill is impaired. Describe the process for determining if Stanvid needs to record a goodwill impairment loss and prepare any required journal entries.

---

Definitions:

Instrumentally Valuable

Something valued not for its own sake, but for the utility it brings in achieving something else considered as an end.

Permissible

Allowed or permitted within a certain set of rules, laws, or ethical guidelines.

Judith Jarvis Thomson

A philosopher best known for her contributions to moral philosophy and bioethics, including her influential defense of abortion rights in "A Defense of Abortion."