1. On January 1, 2016 Star Corporation purchased Moon Corporation for $425,000. At that date, the balance sheet of Moon Corporation was as follows:

Cash$45,000Accounts Payable$150,000Receivables70,000Stockholders Equity180,000Inventory80,000$330,000Land35,000Buildings (Net)42,000Equipment (Net)48,000Copyrights10,000$330,000

The recorded amounts all approximate current values except for land (worth $50,000), inventory (worth $93,000) and Copyrights (worth $12,500)

A) Prepare the journal entry for Star Corporation to record the purchase

B) Prepare the December 31 entry to record amortization of intangibles. The copyrights have an estimated useful life of 4 years and no residual value.

C) In 2017, A main ingredient in many of Moon products was banned by the EPA. Management determined that the Net future cash flows of the division was $330,000. Management also received an offer to purchase the division for $275,000.The identifiable book and fair value of all assets and liabilities are the same.Prepare the entry (if any) to record the impairment loss of goodwill at 12/31/17

D)At December 31, 2018 it is estimated that the fair value of the division has increased to $350,000.Prepare the journal entry (if any) to record this increase.

E) Provide the rationale as to why you did or did not prepare the entry in (d). Note: "That is the rule" is not the answer.