Gotham Properties is a real estate developer that owns and manages high rise residential buildings in the New York area. The following events occurred in 2013.

1. On January 1, 2013, Gotham Properties acquired a competitor, Staten Developments (Staten for short), for $24 million. The acquisition included a parking lot valued by Gotham Properties at $4 million and an apartment building valued at $15 million. Gotham Properties accordingly recorded goodwill of $5 million following the transaction. Staten subsequently ceased operations as a separate company and became a subsidiary of Gotham Properties.

1. Gotham Properties estimated the salvage values of the building and parking lot acquired in the transaction at $5 million and $1 million, respectively. The useful lives of both properties were each estimated at 50 years. The company uses the double-declining balance method to depreciate all assets.

1. In late December of 2013, the New York State highway authority announced a new parkway that would run next to the building acquired from Staten. The proximity of the new highway caused the value of the building to decline due to anticipated noise pollution from traffic. The development reduced the undiscounted cash flow from the building to $250,000 a year for the remaining useful life of 49 years. The value of the parking lot, on the other hand, increased following the parkway announcement. The fair values at year end (December 31, 2013) of the building and parking lot were estimated at $9 million and $8 million, respectively, and the entire Staten subsidiary's fair value was estimated at $21 million.

Required:

1. Determine the book values of the building and parking lot on December 31 2013.
2. Determine the impairment loss, if any, for the building and parking lot and prepare the necessary journal entry to record it.
3. Determine goodwill impairment loss, if any and prepare a journal entry to record it.