Alfonso Inc acquired 100 percent of the voting shares of BelAire Company on January 1, 2020 In exchange, Alfonso paid $386,500 in cash and issued 100,000 shares of its own $1 par value common stock On this date, Alfonsos stock had a fair value of $15 per share The combination is a statutory merger with BelAire subsequently dissolved as a legal corporation BelAires assets and liabilities are assigned to a new reporting unit The following shows fair values for the BelAire reporting unit for January 1, 2020 along with respective carrying amounts on December 31, 2021 BelAire Reporting Unit Fair Values 1 1 20 Carrying Amounts 12 31 21 Cash $ 81,500 $ 45,500 Receivables 186,500 240,500 Inventory 225,000 255,500 Patents 582,500 680,500 Customer relationships 667,500 634,000 Equipment (net) 366,500 295,000 Goodwill 525,000 Accounts payable (122,000 ) (207,000 ) Long term liabilities (626,000 ) (536,000 ) Note Parentheses indicate a credit balance Prepare Alfonsos journal entry to record the assets acquired and the liabilities assumed in the BelAire merger on January 1, 2020 Note Enter cash paid and cash received as two separate amounts On December 31, 2021, Alfonso opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire BelAire reporting unit is $1,675,000 What amount of goodwill impairment, if any, should Alfonso recognize on its 2021 income statement

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Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In exchange, Alfonso paid $386,500 in cash and issued

Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2020. In exchange, Alfonso paid $386,500 in cash and issued 100,000 shares of its own $1 par value common stock. On this date, Alfonsos stock had a fair value of $15 per share. The combination is a statutory merger with BelAire subsequently dissolved as a legal corporation. BelAires assets and liabilities are assigned to a new reporting unit.

The following shows fair values for the BelAire reporting unit for January 1, 2020 along with respective carrying amounts on December 31, 2021.

BelAire Reporting Unit	Fair Values 1/1/20			Carrying Amounts 12/31/21
Cash	$	81,500		$	45,500
Receivables		186,500			240,500
Inventory		225,000			255,500
Patents		582,500			680,500
Customer relationships		667,500			634,000
Equipment (net)		366,500			295,000
Goodwill		?			525,000
Accounts payable		(122,000	)		(207,000	)
Long-term liabilities		(626,000	)		(536,000	)

Note: Parentheses indicate a credit balance.

Prepare Alfonsos journal entry to record the assets acquired and the liabilities assumed in the BelAire merger on January 1, 2020. Note: Enter cash paid and cash received as two separate amounts.
On December 31, 2021, Alfonso opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire BelAire reporting unit is $1,675,000. What amount of goodwill impairment, if any, should Alfonso recognize on its 2021 income statement?