On January 1, 2020 Columbus Corporation had net assets with a book value of $262,000 and a fair value of $275,000. On January 2, 2020 Chicago Corporation purchased Columbus Corporation for $320,000.

a. What is the amount of goodwill that Chicago Corporation will recognize for their purchase of Columbus Corporation. on January 2, 2020? Clearly label and show all of your work. b. Assume that as of December 31, 2020 the book value of the net assets of the Columbus division is $290,000 and the fair value of the division is $285,000. What (if any) is the amount of the goodwill impairment? Clearly label and show all of your work.

c. What is the balance of goodwill as of 12/31/20? Clearly label and show all of your work.