On May 31, 2021, Sandhill Company paid $4,025,000 to acquire all of the common stock of Wildhorse Corporation, which became a division of Sandhill. Wildhorse reported the following balance sheet at the time of the acquisition:

Current assets		$ 1,035,000		Current liabilities		$ 690,000
Noncurrent assets		3,105,000		Long-term liabilities		575,000
				Stockholder's equity		2,875,000
Total assets		$4,140,000		Total liabilities and stockholder's equity		$4,140,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Wildhorse was $3,565,000. At December 31, 2021, Wildhorse reports the following balance sheet information:

Current assets		$ 920,000
Noncurrent assets (including goodwill recognized in purchase)		2,760,000
Current liabilities		(805,000	)
Long-term liabilities		(575,000	)
Net assets		$2,300,000

It is determined that the fair value of the Wildhorse division is $2,530,000.

Compute the amount of goodwill recognized, if any, on May 31, 2021.

Amount of goodwill

$

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Determine the impairment loss, if any, to be recorded on December 31, 2021.

Impairment loss

$

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Assume that the fair value of the Wildhorse division is $2,242,500 instead of $2,530,000. 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 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