On January 1, 2021, Parent Company acquired the net assets of Sub Company for 457000 cash. The fair value of Sub's identifiable net assets was 322000 on this date. Parent Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Sub). The information for the 2022 year is as follows: Present Value of Future Cash Flows: 392000 Carrying Value of Sub's Identifiable Net Assets (excluding Goodwill): 317000 Fair Value of Sub's Indentifiable Net Assets : 317000 1. For 2022 the amount of goodwill impairment, using FASB's simplified approach, assume the qualitative test is satisfied is .

Parent Company acquired all the net assets of Sub Company on December 31, 2021, for 1057000 cash. The balance sheet of Sub Company immediately prior to the acquisition showed: Book value Current assets: 823000 Fair value Current assets: 137000 Book value Plant and equipment: 875000 Fair value Plant and equipment:473000 Book value Liabilities: 42000 Fair value Liabilities: 73000 Common stock: 51000 Other contributed capital:45000 Retained earnings: 1560000 As part of the negotiations, Parent agreed to pay the stockholders of Sub 80000 cash if the postcombination earnings of Parent averaged 1057000 or more per year over the next two years. The estimated fair value of the contingent consideration was 47000 on the date of the acquisition. 1. The journal entry on the Parent's books to record the acquistion would include. amount of goodwill.