Francisco Inc. acquired 100 percent of the outstanding voting shares of Beltran Company on January 1, 2011. To obtain these shares, Francisco payed $450,000 in cash and issued 104,000 shares of its own $1 par value common stock. On this date, Franciscos stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. For internal accountability purposes, Beltrans assets and liabilities are assigned to a new reporting unit. The following reports the fair values for the Beltran reporting unit for January 1, 2011, and December 31, 2012, along with their respective book values on December 31, 2012. Fair Values Fair Values Book Values Beltran Reporting Unit 1/1/11 12/31/12 12/31/12 Cash $ 75,000 $ 50,000 $ 50,000 Receivables 193,000 225,000 225,000 Inventory 281,000 305,000 300,000 Patents 525,000 600,000 500,000 Customer relationships 500,000 480,000 450,000 Equipment (net) 295,000 240,000 235,000 Goodwill ? ? 400,000 Accounts payable (121,000) (175,000) (175,000) Long-term liabilities (450,000) (400,000) (400,000) a. Prepare Franciscos journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2011. b. On December 31, 2012, Francisco estimates that the total fair value of the entire Beltran reporting unit is $1,425,000. What amount of goodwill impairment, if any, should Francisco recognize on its 2012 income statement