On January 1, 2013, Brighton Company acquired the net assets of Dakota Company for $1,580,000 cash. The fair value of Dakota's identifiable net assets was $1,310,000 on his date. Brighton Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Dakota). The information for these subsequent years is as follows:

Year

Present value of Future Cash

Flows

Carrying value of

Fair Value

Dakota's Identifiable Dakota's Identifiable

Net Assets*

Net Assets

2016

2017

$1,400,000

$1,400,000

$1, 160,000

$1,120,000

* Identifiable net assets do not include goodwill.

Required:

$1,190,000

$1,210,000

1. For each year determine the amount of goodwill impairment, if any.
2. Prepare the journal entries needed each year to record the goodwill impairment (if any) on Brighton's books.