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GP Company bought SP Division in 2019 and appropriately recorded $750,000 of goodwill related to the purchase. On December 31, 2020, the fair value of
GP Company bought SP Division in 2019 and appropriately recorded $750,000 of goodwill related to the purchase. On December 31, 2020, the fair value of SP Division is $5,000,000 and it is carried on GPs books for a total of $5,100,000, including the goodwill. An analysis of SP Division indicates that the fair value of its identifiable net assets is $4,600,000 on December 31, 2020. What goodwill impairment should be recognized by GP in 2020?
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