On January 1, 2014, Falcon Company acquired the net assets of James Company for $1,780,000 cash. The fair value of James identifiable net assets was $1,550,000 on this date. Falcon Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (James). The information for these subsequent years is as follows: Year Present Value of Future Cash Flows Carrying Value of Saabs Identifiable Net Assets* Fair Value Saabs Identifiable Net Assets 2016 1,300,000$ 1,250,000$ 1,190,000$ 2017 1,270,000$ 1,150,000$ 1,070,000$

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 Brightons books.