2 - Goodwill and Impairment Issues (13 points) Buyer Company acquired Target Company on January 1, 2020 for $1,500,000 in cash. A schedule of net assets of Target, as recorded on Target's books at the time of acquisition, follows. Assets Cash Receivables $ 37,500 246,000 Inventory 392,000 Land, buildings, and equipment (net) 361,200 $ 1,036,700 Liabilities Current liabilities Long-term debt $ 86,000 183,500 269,500 $ 767,200 Book value of net assets The following is an analysis of the fair value on the date of purchase of the assets acquired by Buyer. Any assets or liabilities not included here have fair values equal to their book values on the date of purchase. Inventory Land, buildings, and equipment (net) Patents Other identifiable intangibles Cost $ 392,000 Market $ 427,000 361,200 389,500 50,000 400,000 Totals $ 753,200 $ 1,266,500 a. What amount of goodwill should Buyer Company record as a result of this acquisition? S b. Prepare the Journal Entry to record the acquisition of the Target Company. (You may omit the explanation) c. What amount of amortization expense would you record for goodwill in 2020? State your assumptions, if any, used in your answer. d. Now assume that by the end of 2020, the book values of all assets and liabilities acquired from Target have not changed. The new division of Buyer that was formed as a result of the acquisition of Target has a market value of $1,550,000 at December 31, 2020. Using this information, is a journal entry required to record an impairment of goodwill? Yes or No? Explain your answer. Show the calculations used to justify your