Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2012. In exchange, Francisco paid $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit.
The following reports the fair values for the Beltran reporting unit for January 1, 2012, and December 31, 2013, along with their respective book values on December 31, 2013.

a. Prepare Francisco's journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2012.
b. On December 31, 2013, Francisco opts to forego any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Beltran reporting unit is $1,425,000. What amount of goodwill impairment, if any, should Francisco recognize on its 2013 income statement?

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Fair Values 12/31/13 Book Values 12/31/13 Fair Values Beltran Reporting Unit1/1/12 Cash Patents Customer relationships Equipment (net) Goodwill Accounts payable Long-term liabilities S 75,000 193,000 281,000 525,000 500,000 295,000 $ 50,000 225,000 305,000 600,000 480,000 240,000 50,000 225,000 300,000 500,000 450,000 235,000 400,000 (175,000) 103),10) 121,000) 1) (400,000)