During the current year, ABC Company acquired all of the outstanding common stock of Steven Inc. paying $12,000,000 cash. The book values of Steven's assets and liabilities are:

	Book Value	Fair Value
Accounts Receivable	$2,800,000	2,025,000
Inventories	$3,100,000	$4,400,000
Building	$7,000,000	$10,100,000
Equipment	$4,000,000	$3,500,000
Patent	$0	$725,000
Trademark	$700,000	$7,000,000
Accounts Payable	$4,000,000	$4,000,000

Bonds Payable $5,500,000 $ 5,125,000

Part A: What is the amount of goodwill, if any?

Part B: At year end, management believes that a custom piece of equipment acquired as part of the MIller acquisition may be impaired. The following date is available:

FMV of the equipment on the date of the acquisition: $800,000

Depreciation of the equipment at year end: $275,000

Undiscounted estimated net cash flows related to the equipment $600,000

FMV of the equipment as of year end $590,000

Required: Prepare the journal entry, if any, for the impairment. If the company continues to use the equipment until its sale is arranged, ,what would be the basis of the depreciation, if any.