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Grand Champion Inc. purchased Americas Sweethearts Corporation on January 1, 2019. At the time, Americas Sweethearts had the following assets and liabilities (stated at fair

Grand Champion Inc. purchased Americas Sweethearts Corporation on January 1, 2019. At the time, Americas Sweethearts had the following assets and liabilities (stated at fair value):

Cash $62,000
Accounts receivable 138,000
Inventory 185,000
Property, plant, and equipment 300,000
Patent 65,000
Accounts payable 200,000
Notes payable 325,000

Grand Champion paid $900,000 for Americas Sweethearts. Assume that Americas Sweethearts is a reporting unit of Grand Champion. At the end of 2020, Americas Sweethearts has a fair value of $720,000 and a book value of $850,000, which includes any goodwill recorded. Of this fair value, $350,000 is attributable to identifiable assets net of (or identifiable net assets) liabilities.

Required:

Calculate the impairment loss of goodwill (if any) and record the appropriate journal entry.

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