Using the information from RE12-9, assume that America’s Sweethearts is a reporting unit of Grand Champion. At the end of 2020, America’s Sweethearts has a fair value of $720,000 and a book value of $850,000, which includes any goodwill recorded in RE12-9. Of this fair value, $350,000 is attributable to identifiable assets net of (or identifiable net assets) liabilities. Calculate the impairment loss of goodwill (if any) and record the appropriate journal entry.

RE12-9

Grand Champion Inc. purchased America’s Sweethearts Corporation on January 1, 2019. At the time, America’s Sweethearts had the following assets and liabilities (stated at fair value):
Cash ................................................................$ 62,000
Accounts receivable ......................................138,000
Inventory .........................................................185,000
Property, plant, and equipment ...................300,000
Patent .................................................................65,000
Accounts payable ............................................200,000
Notes payable ..................................................325,000
Grand Champion paid $900,000 for America’s Sweethearts. Record the purchase by Grand Champion.