If goodwill is impaired by $50, walk through the impact on the three statements.

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IBPrep · Accepted Answer

Income statement: the $50 goodwill impairment is a non-operating expense, but generally NOT tax-deductible under US GAAP. Pretax income drops $50, taxes $0, net income drops the full $50.

If goodwill is impaired by $50, walk through the impact on the three statements.

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If goodwill is impaired by