32. Prime Publishing, Inc., purchased 100 percent of the outstanding common stock of Select Media, Inc., on January 1, 2014, for $3,000,000. The following schedule out- lines how the purchase price was allocated at the time of acquisition: $3,000,000 1,400,000 1,600,000 Price paid ......... Select Media's shareholders' equity.... Excess of cost over book value ....... Attributed to: Buildings: 10-year remaining life ...... Customer Relationships: 9-year useful life....... Copyrights: Indefinite useful life....... Goodwill ............... 80,000 450,000 470,000 600,000 Select Media is an independent subsidiary of Prime Publishing. It is also classified as a separate cash-generating unit (CGU). As of December 31, 2016, Select Media had earned $500,000 before acquisition adjustments (i.e., before subtracting the extra depreciation on buildings and amortization of customer relationships required by the above purchase price allocations). Select Media pays no dividends to Prime. Required: a. What was the book value of the Select Media CGU as of December 31, 2016? Include identifiable intangibles and goodwill in your calculation. Assume that none of the CGU's assets have been impaired since the acquisition. b. On December 31, 2016, the estimated fair value of the Select Media CGU (based on discounted cash flow analysis) was $2,950,000. Should Prime Publishing take an impairment charge to write down the value the CGU's goodwill? If so, what is the value of the charge that Prime Publishing will record