Big Company purchases Small Company for $1,600,000 cash on January 1, 2017. The book value of Small Company's net assets, as reflected on its December 31, 2016 balance sheet is $1,240,000. An analysis by a valuation consultant on December 31st, 2016 indicates that the fair value of Small Company's net assets exceeded the book value by $210,000.

How much goodwill should be recognized by Big Company due to the purchase of Small Company?

True or false: General Products Company should recognize $300,000 in goodwill impairment losses in 2016.