Gandaph Corporation purchased a division five years ago for $ 3 million. The division has been identified as a reporting unit that is cash-generating under IFRS. Management is reviewing the division for impairment of goodwill and has estimated the fair value of the reporting unit to be $ 3.2 million and the unit’s value in use to be $ 3.3 million. In addition, there would be $ 75,000 in direct costs should the company decide to sell. The carrying amounts of the division’s net assets, including the associated goodwill of $ 1,350,000, are listed below.

Carrying Amount of Net Assets Including Goodwill

Cash $ 300,000

Receivables 450,000

Inventory 1,050,000

Property, plant, and equipment (net) 1,200,000

Goodwill 1,350,000

Less: Accounts and notes payable   (750,000)

Net assets, at carrying amounts $ 3,600,000

Determine if goodwill is impaired and provide the related journal entries, if any, under both ASPE and IFRS.