Several years ago , Blaha Company purshased Husker Company as a subsidary. At the time Blaha Company recorded goodwill of $100,000 related to the purshase. Since the time the company has not considered the goodwill to be impared. However, at the end of 2004, Blaha Company decides to evaluate the goodwill for impairment because of tecnological changes in the industry. The subsidiary has a book value (incluiding the goodwill) of $900,000. Blaha Company estimtes that the fair value of the subsidiary in $720,000, of which it allocates $660,000 to the subsidiary's indentificable assets and liabilities.
Requirements:
Prepared a journal entry (if any) for Blaha Comapany to recorded the impairement of its goodwill at the end of 2004.