(Accounting for Goodwill) On July 1, 2020, Zoe Corporation purchased the net assets of Soorya Company by paying $415,000 cash and issuing a $50,000 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows: Cash $ 75,000 Accounts payable $300,000 Accounts receivable 102,000 Soorya, capital 239,000 Inventory 98,000 $539,000 Land 50,000 Buildings (net) 75,000 Equipment (net) 90,000 Trademarks (net) 49,000 $539,000 The recorded amounts all approximate current values except for land (worth $60,000), inventory (worth $125,000), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $12,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $14,000, $23,000, and $47,000, respectively. Instructions a. Prepare the July 1, 2020 entry for Zoe Corporation to record the purchase. b. Assume that Zoe is a private entity and tested its goodwill for impairment on December 31, 2021. Management determined that the reporting unit's carrying amount (including goodwill) was $500,000 and that the reporting unit's fair value (including goodwill) was $450,000. Determine if there is any impairment and prepare any necessary entry on December 31, 2021. Zoe applies ASPE. c. Repeat part (a), assuming that the purchase price was $204,000, all paid in cash. d. Based on part (a), assume now that Zoe is a public entity and tested its goodwill for impairment on December 31, 2021. The cash-generating unit's values (including goodwill) are as follows: Carrying amount $500,000 Value in use 475,000 Fair value 450,000 Disposal costs 25,000 Determine if there is any impairment and prepare any necessary entry on December 31, 2021. e. Based on part (a), discuss factors that Zoe may have considered in deciding to pay total consideration of $465,000 for Soorya.