Indicate How Each Event Affects the Elements of Financial Statements $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$

question 34

Short Answer

Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. $$\text { Increase } = \mathrm { I } \quad \text { Decrease } = \mathrm { D } \quad \text { No Effect } = \mathrm { N }$$
In 2014, Harvest Corporation recognized an impairment loss of $20,000 of goodwill. The goodwill was originally recorded two years earlier in connection with the purchase of another company. Show how the impairment loss affected the financial statements in 2014.

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Definitions:

Definitional

Pertaining to the precise meaning or nature of a term or concept.

Formula

A mathematical expression that calculates or represents a relationship between different quantities.

Sum of Squares

The sum of the squared differences between each observation and the overall mean, used in various statistical calculations.

Population Variance

Average squared deviation of a score from the population mean.