General Products Company Bought Special Products Division in 2014 and Appropriately

General Products Company bought Special Products Division in 2014 and appropriately recorded $750,000 of goodwill related to the purchase. On December 31, 2015, the fair value of Special Products Division is $6,000,000 and it is carried on General Product's books for a total of $5,100,000, including the goodwill. An analysis of Special Products Division's assets indicates that goodwill of $600,000 exists on December 31, 2015. What goodwill impairment should be recognized by General Products in 2015?

A) $0.
B) $300,000.
C) $75,000.
D) $450,000.

Correct Answer:

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