sentences:  If the fair value is less than carrying value (impaired), the goodwill value needs to be reduced so the carrying value is equal to the fair value.The impairment loss is reported as a separate line item on the income statement, and new adjusted value of goodwill is reported in the balance sheet.When the business is threatened with insolvency, investors will deduct the goodwill from any calculation of residual equity because it has no resale value.