On May $31,2026,$ Brigham Company paid $$3,780,000$ to acquire all of the common stock of DuraDent Corporation, which became a division of Brigham Company. DuraDent Corporation reported the following balance sheet data at the time of the acquisition: Current Assets $$972,000$; Noncurrent Assets $$2,916,000$; Current Liabilities $$648,000$; Long$-$term Liabilities $$540,000$; and Stockholders' Equity $$2,700,000.$

It was determined at the date of the purchase that the fair value of the identifiable net assets of DuraDent Corporation was $$3,348,000.$ Over the next $7$ months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December $31,2026,$ when DuraDent Corporation computes Net Assets, it reports the following balance sheet information: Current Assets $$862,000$; Noncurrent Assets $($including goodwill recognized in purchase$)$ $$2,592,000$; Current Liabilities $),$ and Long$-$term Liabilities $$(540,000).$ Finally, it is determined that the fair value of the DuraDent Cc$.$ poration Division is $$2,106,000$ on December $31,2026.$

Required: Relateu to goodwill, compute and answer the following.

a$.$ What is the amount of goodwill recognized $($if any$)$ on May $31,2026?$

b$.$ Prepare the journal entry $($if any$)$ to record the impairment of goodwill on December $31,2026.$ If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{26},$Impairment loss on Gooc,$226,000,$No Entry$],[,$Goodwill,No Entry,$226,000]]$

c$.$ Assume that the fair value of the DuraDent Corporation Division is $$2,376,000.$ Prepare the journal entry $($if any$)$ to record the impairment of goodwill on December $31,2026.$ If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{26},$Impairment loss on Goor,$54,000,$No Entry$],[,$Goodwill,No Entry,$54,000]]$

d$.$ As of December $31,2026,$ prepare the journal entry $($if any$)$ to record the amortization of goodwill. If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{26},$No Entry,No Entry,No Entry$],[,$No Entry,No Entry,No Entry$]]$

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{26},$Impairment loss on Goor,$226,000,$No Entry$],[,$Goodwill,No Entry,$226,000]]$

c$.$ Assume that the fair value of the DuraDent Corporation Division is $$2,376,000.$ Prepare the journal entry $($if any$)$ to record the impairment of goodwill on December $31,2026.$ If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{26},$Impairment loss on Goor,$54,000,$No Entry$],[,$Goodwill,No Entry,$54,000]]$

d$.$ As of December $31,2026,$ prepare the journal entry $($if any$)$ to record the amortization of goodwill. If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title$],[\frac{12}{31}\frac{?}{26},$No Entry$],[,$No Entry$]]$

$\backslash$table$[[$Debit:$,$Credit:$],[$No Entry,No Entry$],[$No Entry,No Entry$]]$

e$.$ One year later $($at December $31,2027),$ it is estimated that the division's fair value increased to $$2,135,000.$ Prepare the journal entry to record this increase in fair value. If $"$No Entry" is needed, please indicate $"$No Entry".

$\backslash$table$[[$Reference:$,$Account Title,Debit:,Credit:$],[\frac{12}{31}\frac{?}{27},$No Entry,No Entry,No Entry$],[,$No Entry,No Entry,$]]$