In late July 2020, Blue Spruce Ltd., a private company, paid $2.1 million to acquire all of the net assets of Swifty Corp., which then became a division of Blue Spruce. Swifty reported the following statement of financial position at the time of acquisition:

Current assets		$415,000		Current liabilities		$300,000
Non-current assets		1,335,000		Long-term liabilities		265,000
				Shareholders equity		1,185,000
		$1,750,000				$1,750,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Swifty was $1.7 million. Over the next six months of operations, the new division had operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, the fair value of the Swifty Division is $1,865,000, and the division reports the following statement of financial position information:

Current assets		$465,000
Non-current assets (including goodwill recognized in purchase)		2,600,000
Current liabilities		(703,000	)
Long-term liabilities		(525,000	)
Net assets		$1,837,000

Assume that Blue Spruce Ltd. prepares financial statements in accordance with ASPE.Calculate the amount of goodwill, if any, that should be recognized in late July 2020.

Goodwill

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Determine the loss on impairment, if any, to be recognized on December 31, 2020. (If an answer is zero, please enter 0. Do not leave any fields blank.)

Impairment loss

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Assume that the fair value of the Swifty Division on December 31, 2020, is $1.4 million. Determine the loss on impairment, if any, that would be recognized.

Impairment loss

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Prepare the journal entry to record the loss on impairment, if any. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020