1. On May 31, 2018, Armstrong Company paid $3,200,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: Current assets Noncurrent assets S 900,000 2.700,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and S 600,000 500,000 2,500,000 S3.600.000 stockholders equity 3.600.000 Total assets It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was the same as the carrying value. At December 31, 2018, Hall reports the following balance sheet informati on: Current assets Noncurrent assets (including goodwill recognized in purchase Current liabilities Long-term liabilities S 800,000 2,400,000 (700,000) 500,000 $2.000.000 Net assets It is determined that the fair value of the Hall division is $2,300.000. The recorded amount for Hall's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $200,000 above the carrying value Instructions (a) Compute the amount of goodwill recognized, if any, on May 31, 2018 and journalize the acquisition. (b) Determine the impairment loss, if any, to be recorded on December 31, 2018 (c) Assume that the fair value of the Hall division is $1,700,000 instead of S2,300,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2018