On May 31, 2007, Porter Company paid $3,200,000 to acquire all of the common stock of EatonCorporation, which became a division of Porter. Eaton reported the following balance sheet at the time ofthe acquisition:Current assets $800,000 Current liabilities $600,000Noncurrent assets 2,700,000 Long-term liabilities 500,000Stockholders equity 2,400,000Total assets $3,500,000 Total liabilities and stockholders equity $3,500,000It was determined at the date of the purchase that the fair value of the identifiable net assets of Eaton was$2,700,000. At December 31, 2007, Eaton reports the following balance sheet information:DR (CR)Current assets $600,000Noncurrent assets (including goodwill recognized in purchase) 2,400,000Current liabilities (700,000)Long-term liabilities (500,000)Stockholders Equity (1,800,000)The recorded amount for Eatons net assets (excluding goodwill) is the same as fair value, except forproperty, plant, and equipment, which has a fair value of $200,000 above the carrying value.Assume the 12/31/07 fair value of the Eaton division is $1,700,000.

a.On 5/31/07, Porter Company recorded Goodwill of:

b.On 12/31/07, the recorded Loss due to Impairment is:

c. Poppers Corporation owns machinery with a book value of $155,000. The machinery has a fairvalue of $145,000. It is estimated that the machinery will generate future undiscounted net cashflows of $156,000. Poppers should recognize a loss on impairment of: