Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $445,250 in cash and issued 129,000 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. 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, 2017, and December 31, 2018, along with their respective book values on December 31, 2018. Beltran Reporting Unit Fair Values 1/1/17 Fair Values 12/31/18 Book Values 12/31/18 Cash $ 143,500 $ 93,500 $ 93,500 Receivables 280,750 330,000 330,000 Inventory 324,750 352,000 345,200 Patents 552,500 630,000 503,500 Customer relationships 621,250 598,000 544,250 Equipment (net) 393,000 295,000 288,150 Goodwill ? ? 484,000 Accounts payable (126,500 ) (225,000 ) (225,000 ) Long-term liabilities (680,000 ) (596,000 ) (596,000 ) Prepare Franciscos journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2017. On December 31, 2018, Francisco opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Beltran reporting unit is $1,620,750. What amount of goodwill impairment, if any, should Francisco recognize on its 2018 income statement?

Problem 3-16 (LO 3-6) Francisco Inc. acquired 100 percent of the voting shares of Beltran Company on January 1, 2017. In exchange, Francisco paid $445,250 in cash and issued 129,000 shares of its own $1 par value common stock. On this date, Francisco's stock had a fair value of $12 per share. The combination is a statutory merger with Beltran subsequently dissolved as a legal corporation. Beltran's assets and liabilities are assigned to a new reporting unit. The following reports the fair values for the Beltran reporting unit for January 1, 2017, and December 31, 2018. along with their respective book values on December 31, 2018. Beltran Reporting Unit Cash Receivables Inventory Patents Customer relationships Equipment (net) Goodwill Accounts payable Long-term liabilities Fair Values 1/1/17 $ 143,500 280, 750 324.750 552, see 621,250 393,800 Fair Values 12/31/18 $ 93,500 330,000 352.899 638. eee 598,899 295,800 Book Values 12/31/18 $ 93,500 33e.eeg 345,209 503,500 544.250 288,150 484.299 (225, 800) (596, 800) (126,500) (688. eee) (225, 800) (596, 800) a. Prepare Francisco's journal entry to record the assets acquired and the liabilities assumed in the Beltran merger on January 1, 2017. b. On December 31, 2018. Francisco opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Beltran reporting unit is $1.620,750. What amount of goodwill impairment, if any, should Francisco recognize on its 2018 income statement