Question: Acquirer Company bought Senile Company for $5,000,000 on January 2, 2004. Tile fair market value of the individual net assets was $300,000. In succeeding years, the fair market value of Simile's costs and goodwill were as follows:
Required: a. What amount of goodwill should be recognized as a result of the acquisition of Servile in 2004?
b. Determine the amounts of the goodwill write-offs (if any) in 2005, 2006, and 2007.