A. The impairment of goodwill is an adjustment to net income, and it needs to be added to net income. This is because the impairment of the goodwill reduced the net income of the company, but since it was not paid out in cash, it needs to be added back in to determine cash flows.

B. Impairment of goodwill is an adjustment to net income in the operating activities section.

C. The impairment of goodwill is an adjustment to net income, but it needs to be added to net income, not subtracted. See the correct answer for a complete explanation.

D. Impairment of goodwill is an adjustment to net income in the operating activities section.