On July 1, 2020, Sarasota Corporation purchased the net assets of Soorya Company by paying $435,000 cash and issuing a $50,900 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows:

Cash		$75,800		Accounts payable		$317,800
Accounts receivable		106,000		Soorya, capital		232,000
Inventory		96,000		Total		$549,800
Land		48,900
Buildings (net)		75,800
Equipment (net)		99,000
Trademarks (net)		48,300
Total		$549,800

The recorded amounts all approximate current values except for land (worth $60,200), inventory (worth $127,200), 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 $23,000, $32,000, and $56,000, respectively.

2. Assume that Sarasota is a private entity and tested its goodwill for impairment on December 31, 2021. Management determined that the reporting units carrying amount (including goodwill) was $539,000 and that the reporting units fair value (including goodwill) was $464,000. Determine if there is any impairment and prepare any necessary entry on December 31, 2021. Sarasota applies ASPE.

3. Prepare the July 1, 2020 entry for Sarasota Corporation to record the purchase. Assume that the purchase price was $200,800, all paid in cash.