On July 1, 2020, OP Corporation purchased the net assets of S Company by paying $415,000 cash and issuing a $50,000 note payable to S Company. At July 1, 2020, the statement of financial position of S Company was as follows: Cash $75,000 Accounts payable $300,000 Accounts receivable 102,000 Shina, capital 239,000 Inventory 98,000 $539,000 Land 50,000 Buildings (net) 75,000 Equipment (net) 90,000 Trademarks (net) 49,000 $539,000 The recorded amounts all approximate current values except for land (worth $60,000), inventory (worth $125,000), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $12,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $14,000, $23,000, and $47,000, respectively.

(a) Prepare the July 1, 2020 entry for OP Corporation to record the purchase.

(b) Assume that OP is a private entity and tested its goodwill for impairment on December 31, 2021. Management determined that the reporting unit's carrying amount (including goodwill) was $500,000 and that the reporting unit's fair value (including goodwill) was $450,000. Determine if there is any impairment and prepare any necessary entry on December 31, 2021. OP applies ASPE.