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 assets		2,700,000		Long-term liabilities		500,000
				Stockholder's equity		2,500,000
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 Halls 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 1

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