PharmaCo purchased BaldNoMore Co (BNMC) on 3/31/23 for the following:

$50 million paid in cash

$25 million additional price to be paid in cash on November 30, 2023 if a drug being developed by BNMC for the cure of baldness was given Phase IV FDA approval prior to that date

PharmaCo determined the likelihood of achieving Phase IV FDA approval was 60% and accordingly the fair value of the contingent note was $15 million on 3/31/23

The fair value of all net assets of BNMC as of 3/31/23 was $40 million (assume this value is not affected by the outcome of the above)

On November 29, 2023, the FDA notified PharmaCo that the drug had failed its test and accordingly would not be approved in 2023

What is original goodwill to be recorded at the 3/31/23 acquisition date

Write out the journal entry required at the FDA rejection of the drug and failure to achieve the contingency