Please solve the problem and write in the chart
You must submit your solution as ONE PDF file. Google Docs/Sheets allows you to download your work into a PDF file by going to the "File" menu item and selecting "Download" and "PDF". You must format your work correctly/professionally ensuring that your submission doesn't have your work being split and cut off onto multiple pages (like half your balance sheet on one page and half on the other). Simply submit ONE PDF file that you could print and turn in if this were an in-person course. Case Instructions On April 30, 2023, Pike Company paid $5,800,000 to acquire all of the common stock of Star Corporation, which became a division of Pike. Star reported the following balance sheet at the On April 30,2023 , Pike Company paid $5,800,000 to acquire all of the common stock of Star Corporation, which became a division of Pike. Star reported the following balance sheet at the time of the acquisition: It was determined at the date of the purchase that the fair value of the identifiable net assets of Star was $4,200,000. At December 31, 2023, Pike reports the following balance sheet information: It is determined that the fair value of the Star division is $3,400,000 1. Compute the amount of goodwill recognized, if any, on April 30, 2023. 2. Determine the impairment loss, if any, to be recorded on December 31, 2023. If impairment loss is not to be recorded, explain why. 3. Assume that the fair value of the Star division is $3,200,000 instead of 3,400,000. Prepa the journal entry to record the impairment loss, if any, on December 31, 2023. If a impairment loss is not to be recorded, explain why. You must submit your solution as ONE PDF file. Google Docs/Sheets allows you to download your work into a PDF file by going to the "File" menu item and selecting "Download" and "PDF". You must format your work correctly/professionally ensuring that your submission doesn't have your work being split and cut off onto multiple pages (like half your balance sheet on one page and half on the other). Simply submit ONE PDF file that you could print and turn in if this were an in-person course. Case Instructions On April 30, 2023, Pike Company paid $5,800,000 to acquire all of the common stock of Star Corporation, which became a division of Pike. Star reported the following balance sheet at the On April 30,2023 , Pike Company paid $5,800,000 to acquire all of the common stock of Star Corporation, which became a division of Pike. Star reported the following balance sheet at the time of the acquisition: It was determined at the date of the purchase that the fair value of the identifiable net assets of Star was $4,200,000. At December 31, 2023, Pike reports the following balance sheet information: It is determined that the fair value of the Star division is $3,400,000 1. Compute the amount of goodwill recognized, if any, on April 30, 2023. 2. Determine the impairment loss, if any, to be recorded on December 31, 2023. If impairment loss is not to be recorded, explain why. 3. Assume that the fair value of the Star division is $3,200,000 instead of 3,400,000. Prepa the journal entry to record the impairment loss, if any, on December 31, 2023. If a impairment loss is not to be recorded, explain why
