3. Goodwill Background: PepsiCo acquired company Izze Beverage Company for a cash payment of $700,000 in 2017. At the time of purchase, Izze's balance sheet showed assets of $620,000, liabilities (Accounts payable) of $200,000, and owner's equity of $420,000. The fair value of Izze's assets were valued at $800,000. One year later, PepsiCo should conduct the annual impairment test. In carrying out its quantitative assessment, PepsiCo determines the fair value of the Izze as a reporting unit is $340,000 and the carrying value of its investment in Izze is $380,000. Required: 3.a. Record the journal entry of the acquisition of Izze Beverage Company, including any goodwill. 3.b. Should an impairment loss be recognized in 2018? If so, record the entry