Giant acquired all of Smalls common stock on January 1, 2011. Over the next few years, Giant applied the equity method to the recording of this investment. At the date of the original acquisition, $121,500 of the fair-value price was attributed to undervalued land while $55,000 was assigned to equipment having a 10-year life. The remaining $74,500 unallocated portion of the acquisition-date excess fair value over book value was viewed as goodwill. Following are individual financial statements for the year ending December 31, 2015. On that date, Small owes Giant $10,500. Small declared and paid dividends in the same period. Credits are indicated by parentheses.

	Giant			Small
Revenues	$	(1,285,500	)	$	(408,000	)
Cost of goods sold		575,000			93,000
Depreciation expense		215,000			180,000
Equity in income of Small		(129,500	)		0
Net income	$	(625,000	)	$	(135,000	)
Retained earnings, 1/1/15	$	(1,540,000	)	$	(624,000	)
Net income (above)		(625,000	)		(135,000	)
Dividends declared		280,000			100,000
Retained earnings, 12/31/15	$	(1,885,000	)	$	(659,000	)
Current assets	$	504,500		$	159,000
Investment in Small		1,052,500			0
Land		460,000			266,000
Buildings (net)		332,000			434,000
Equipment (net)		695,000			367,000
Goodwill		0			0
Total assets	$	3,044,000		$	1,226,000
Liabilities	$	(909,000	)	$	(397,000	)
Common stock		(250,000	)		(170,000	)
Retained earnings(above)		(1,885,000	)		(659,000	)
Total liabilities and equities	$	(3,044,000	)	$	(1,226,000	)

a.

How was the $129,500 Equity in Income of Small balance computed?

b.

Prepare a consolidation worksheet for Giant and Small for the year ending December 31, 2015

c.	If Giant determined that the entire amount of goodwill from its investment in Small was impaired in 2015, what journal entry would Giant make to record such impairment?