Measurement Period Adjustment with Income Effects

On November 1, 2019, Placer Corporation acquired all of the assets and liabilities of Sonata Company. The acquisition generated goodwill of $50,000,000. At the date of acquisition, Sonatas equipment had an estimated fair value of $27,000,000, and a 4-year life, straight-line. On March 31, 2020, new information reveals that the equipments fair value was $36,000,000 at the date of acquisition. Placers accounting year ends on December 31.

Required

Prepare the journal entry or entries to record the change in valuation of Sonatas equipment on March 31, 2020, assuming the valuation change is within the measurement period, and depreciation has already been recorded through March 31.

Not all drop-down answers may be required for the journal entry. If an account is not required, select "N/A" as your answer.

Description		Debit	Credit
AnswerEquipmentGoodwillLoss on equipment		Answer	Answer
AnswerDepreciation expenseN/A		Answer	Answer
AnswerEquipmentGoodwillLoss on equipment		Answer	Answer