P$1-32$ Computation of Account Balances

Saspro Division is considered to be an individual reporting unit of Pabor Company. Pabor acquired the division by issuing $100,000$ shares of its common stock with a market price of $$7\mathrm{.}60$ each. Pabor's management was able to identify assets with fair values of $$810,000$ and liabilities of $$190,000$ at the acquisition date. At the end of the first year, the fair value of the reporting entity was estimated to be $$930,000.$ On this date, Pabor's accountants concluded that it must recognize a goodwill impairment of $$30,000.$

Required

a$.$ Determine the initial amount of goodwill recorded on the acquisition date. Show your computation.

b$.$ If the carrying value of the reporting unit's liabilities at the end of the period were $$70,000,$ what is the maximum carrying value of the reporting unit's assets that would allow Pabor to avoid recognizing a goodwill impairment? Show your computation.