Answer
Inappropriate journal entry. Goodwill is an intangible asset and should be capitalized and amortized, and failing to do this is violating the revenue recognition criteria.,
Work Step by Step
Moreover, by writing off the goodwill, the corporation has assumed liquidation, and liquidation should only be considered if it is imminent. The going concern principle is only inapplicable when liquidation is imminent, which shows that this entry also violates the going concern principle.
