Sandpiper Company pays $$1,590,000$ to acquire $100\%$ of the common stock of Biscayne Incorporated.

$($Cick the icon to view additional information.$)$

the unit are zero.

Read the requirements.

necessary.

Start with Part $1-$ assess recoverability.

Part $1$:

Data table

Requirements

a$.$ Determine whether goodwill is impaired assuming that the fair value of the

Biscayne Division with goodwill $1$ year after acquisition is equal to $$2,140,000$

and its value in use $1$ year after acquisition was $$1,721,000.$ Provide the

impairment journal entry, if necessary.

b$.$ Determine whether goodwill is impaired assuming that the fair value of the

Biscayne Division with goodwill $1$ year after acquisition is equal to $$1,605,000$

and value in use $1$ year after acquisition was $$1,690,000.$ Provide the

impairment journal entry, if necessary.