On May 31, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition:

Current assets$900,000 Current liabilities$600,000 Noncurrent assets2,700,000 Long-term liabilities500,000 Stockholder's equity2,500,000 Total assets$3,600,000

Total liabilities and stockholder's equity$3,600,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000. At December 31, 2018, Hall reports the following balance sheet information:

Current assets$800,000 Noncurrent assets (including goodwill recognized in purchase)2,400,000 Current liabilities(700,000) Long-term liabilities(500,000) Net assets$2,000,000

It is determined that the fair value of the Hall division is $2,200,000. The recorded amount for Hall's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $200,000 above the carrying value.

part one

Compute the amount of goodwill recognized, if any, on May 31, 2018.

Amount of goodwill ______________

part 2

Determine the impairment loss, if any, to be recorded on December 31, 2018.

Impairment loss __________________

Part 3

Assume that the fair value of the Hall division is $1,950,000 instead of $2,200,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2018.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

xxxx

xxxx