Since the reasonable estimation of pritt division at the season of the impairment examination is $1,900,000 which is lower than the conveying estimation of $2,400,000, there is a impairment loss of $500,000.
Thus, a impairment loss of $500,000 should be accounted against Goodwill.
|Account titles and explanation||Debit($)||Credit($)|
|Impairment loss A/c Dr ($2,400,000-$1,900,000)||$500,000|
|To Goodwill A/c||$500,000|
|(To record patent amortization for 2014)|