Equipment Intangible

dins the current year, Brewer Company acquired all of the outstanding commou ng12,000,000 cash. The book values and fair values of Miller's assets ana outstanding common stock of Miller Inc. assetsommon stock of Miller Inc. Accounts receivable Inventories Building Equipment Patent Trademark Book Value Fair Value $1,800,000 $1,025,000 2,100,000 3,400,000 6,000,000 9,100,000 ,000,000 2,500,000 625,000 600,000 3,000,000 3,000,000 ,500,000 4,125,000 25 600,000 Accounts payable Bonds payable Part A: Required: What is the amount of goodwill, if any? ,12so Part B: At year end, management believe that a c ustom piece of equipment acquired as part of the Miller acquisition may be impaired. The following data was available Fair Market Value of the equipment on the date of acquisition: $700,000 Depreciation of the equipment at year end Undiscounted estimated net cash flows related to the equipment 500,000 Fair market value of the equipment as of year-end 175,000 490,000 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 depreciation, if any