On May 1, 2017, Vinson Corporation acquired Carley Company for $1,000,000 cash. At the time of purchase, Carleys balance sheet showed assets of $825,000 and liabilities of $150,000. The fair value of Carleys assets is estimated to be $900,000. The fair value of Carleys liabilities is equal to book value.

(a) What is the fair value of identifiable net assets for Carley Corporation?

(b) Compute the amount of goodwill acquired by Vinson.

(c) On December 31, the fair value of Carley is estimated to be $800,000 and the implied fair value of goodwill is $210,000. The carrying value of Carleys net assets, including the goodwill, at year-end is $850,000. Prepare Vinsons journal entry, if necessary, to record impairment of goodwill.