On May 31, 2021, Pharoah Company paid $3,325,000 to acquire all of the common stock of Sheridan Corporation, which became a division of Pharoah. Sheridan reported the following balance sheet at the time of the acquisition: Current assets $ 855,000 2,565,000 Noncurrent assets Current liabilities Long-term liabilities Stockholder's equity Total liabilities and stockholder's equity $ 570,000 475,000 2,375,000 Total assets $3,420,000 $3.420,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Sheridan was $2,945,000. At December 31, 2021, Sheridan reports the following balance sheet information: Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities $ 760,000 2,280,000 (665,000) (475,000) $1,900,000 Net assets It is determined that the fair value of the Sheridan division is $2,090,000. Part 1 Compute the amount of goodwill recognized, if any, on May 31, 2021. Amount of goodwill $ e Textbook and Media List of Accounts Part 2 Determine the impairment loss, if any, to be recorded on December 31, 2021. Impairment loss $ eTextbook and Media List of Accounts Part 3 Assume that the fair value of the Sheridan division is $1,852,500 instead of $2,090,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2021. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit eTextbook and Media List of Accounts