On May 28, 2021, Preston Corporation acquired all of the outstanding common stock of Perri, Inc., for $420 million. The fair value of Perris identifiable tangible and intangible assets totaled $512 million, and the fair value of liabilities assumed by Preston was $150 million.

Preston performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information:

Fair value of Perri, Inc. $400 million

Fair value of Perris net assets (excluding goodwill) 370 million

Book value of Perris net assets (including goodwill) 410 million

Required:

1. Determine the amount of goodwill that resulted from the Perri acquisition.

2. Determine the amount of goodwill impairment loss that Preston should recognize at the end of 2021, if any. If an impairment loss is required, prepare the journal entry to record the loss.