Arcadia, Incorporated, acquired $100$ percent of the voting shares of Bruno Company on January $1,2023.$ In exchange, Arcadia paid

$$324,250$ in cash and issued $100,000$ shares of its own $$1$ par value common stock. On this date, Arcadia's stock had a fair value of

$$15$ per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation. Bruno's assets and

liabilities are assigned to a new reporting unit.

The following shows fair values for the Bruno reporting unit for January $1,2023,$ along with respective carrying amounts on December

$31,2024.$

Note: Parentheses indicate a credit balance.

Required:

a$.$ Prepare Arcadia's journal entry to record the assets acquired and the liabilities assumed in the Bruno merger on January $1,2023.$

b$.$ On December $31,2024,$ Arcadia opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value

of the entire Bruno reporting unit is $$1,705,000.$ What amount of goodwill impairment, if any, should Arcadia recognize on its $2024$

income statement?

Complete this question by entering your answers in the tabs below.

Required B

Prepare Arcadia's journal entry to record the assets acquired and the liabilities assumed in the Bruno merger on January $1,2023.$

Note: Enter cash paid and cash received as two separate amounts. If no entry is required for a transaction$/$event$,$ select $"$No journal

entry required" in the first account field.

Journal entry worksheet

$1$

Record the assets acquired and the liabilities assumed in the Bruno merger on

January $1,2023.$