On August 31, 2020, Kennison Company paid $1,050,000 to acquire all of the common stock of Lawrence Company, which became a division of Kennison Lawrence reported the following balance sheet at the time of the acquisition Assets Liabilities and Stockholders' Equity Cash $ 960,000 Accounts payable $200,000 Accounts receivable 400,000 Long-term note payable 1,300,000 PP&E (net) 800,000 Total liabilities 1,500 000 Trademarks 70,000 Common stock $250,000 Retained earnings 480,000 730,000 Total assets $2,230,000 Total liabilities and stockholders' equity $2.230,000 Kennison and Lawrence agree that the fair market value equals to the reported value for all assets and liabilities On December 31, 2021, Lawrence reports the following balance sheet information: Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities $1,600,000 1,000,000 (500,000) Long-term liabilities (1.100,000) It is determined that the fair value of the Lawrence division is $1,200,000 on December 31, 2021 (Note: you may not use all rows/columns of the provided tables) Instructions (1) Compute the amount of goodwill recognized, if any, on August 31, 2020. (3 points) (2) Prepare the entry to record the purchase of Lawrence on Kennison's books. (4 points) Account Debit Credit (3) Determine the impairment loss, if any, to be recorded on December 31, 2021. (3 points) impairment loss is recorded, because (4) Assume that the fair value of the Lawrence division is $800,000 instead of $1,200,000 on December 31, 2021. (5 points) (a) Find out the impairment loss (if any) of Goodwill on December 31, 2021. (3 points) (b) Prepare the journal entry to record the impairment loss of Goodwill. If there is no impairment loss, write "none needed. (2 points) Account Debit Credit