Hey, First you calculate the goodwill in the direct subsidiary using the full goodwill method, which is $8000 and therefore its impairment will be 10% i.e. $800. Then you calculate the goodwill in the indirect subsidiary. I use a slight different way than that used in the solution Cost of investment= 80,000*80%(Parent’s share in ‘Dimitrys’)= $64000 Share of net asset= ($70,000 + $48,000)*48% (effective share in Viltalis)= $56,640 Goodwill= $64,000-$56,640= $7,360 Therefore its 10% will be $736 So the total goodwill will be $800+$736= $1536