On July 1, 2017, Vinson Corporation acquired all of the common stock of Carley Company for $900,000 cash, which then became a division of Vinson. At the time of purchase, Carleys balance sheet showed total assets of $775,000 and total liabilities of $250,000. The fair value of Carleys assets is estimated to be $950,000. On December 31, 2017, Carlely reports the following balance sheet information:

Current Assets $ 170,000

Noncurrent assets (including goodwill from July 1, 2017) 550,000

Current liabilities (150,000)

Long-term liabilities (120,000)

Net Assets $ 450,000

Vinson determines that the fair value of the Carley Reporting Unit is $430,000. The amounts recorded in Carleys books (excluding goodwill) represent the fair value except for Property, Plant, and Equipment which has a fair value of $50,000 above the carrying value. Instructions

(a) Compute the amount of goodwill in Vinsons acquisition of Carley on July 1, 2017.

(b) Perform and document the impairment testing procedures for goodwill.

(c) Prepare the journal entry to record the impairment loss, if any, on December 31, 2017.