On May 31, 2020, Foster Company paid €3,400,000 to acquire all of the ordinary shares of ABC Corporation, which became a division of Foster Company. ABC reported the following statement of financial position at the time of the acquisition:

Non-current assets €2,700,000 Equity €2,500,000

Current assets 900,000 Non-current liabilities 500,000

Current liabilities 600,000

Total assets €3,600,000 Total equity and liabilities €3,600,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of ABC was €2,800,000. At December 31, 2020, ABC reports the following statement of financial position information:

Current assets € 800,000

Non-current assets (including goodwill recognized in purchase) 2,400,000

Current liabilities (700,000)

Non-current liabilities (500,000)

Net assets €2,000,000

It is determined that the recoverable amount value of the ABC division is €2,100,000.

Required:

(a) Compute the amount of goodwill recognized, if any, on May 31, 2020.

(b) Determine the impairment loss, if any, to be recorded on December 31, 2020.

(c) Assume that the recoverable amount of the ABC division is €1,800,000 instead of $2,100,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2020.