On March 1, 2023, Gopala Pvt Ltd purchases Sethuraman Pvt Ltd for 10,000,000 cash. As part of the purchase, they acquire tangible net assets of $6,500,000, plus Patent A, worth $1,200,000 and Patent B worth $200,000. They also acquire Sethuraman's trademark, which they value at 1,000,000.

How much Goodwill with Gopala record as part of the purchase?

Prepare the journal entry to record the purchase.

DR: Tangible Net Assets

DR: Patents

DR: Trademark

DR:

CR:

On March 1, 2024, Gopala reviews the goodwill for impairment and estimates that its currrent value is $800,000.

Prepare the journal entry to record the Impairment.

DR:

CR: [goodwill]