Shaquille Company pays $1,599,600 to acquire 100% of the common stock of Revolve Incorporated. It assumes that Revolve's plant assets (such as the factory building and land) are undervalued by $43,000. The historical cost of the net assets acquired, excluding goodwill is equal to $1,502,500. Revolve will be held as a division of Shaquille. The following information is available after 1 year the acquisition of the subsidiary company:

Description	Debit	Credit
Cash	202,000
Inventory	309,000
Property, Plant and Equipment	1,465,700
Goodwill	54,100
Current Liabilities		400,800
Common Stock-no par		341,000
Retained Earnings		1,289,000
Totals	2,030,800	2,030,800

Shaquille estimated the fair value of the divisions net assets (excluding goodwill) 1 year after the date of acquisition at 1,609,000.

A. Compute the goodwill recorded on the date of acquisition. (COMPLETED)

Acquisition Cost	1,599,600
Book Value of net assets acquired	(1,502,500)
Excess cost over book value	97,100
Revaluation of plant assets	(43,000)
Goodwill	54,100

B. determine whether goodwill is impaired assuming that the fair value of the Revolve Division with goodwill 1 year after acquisition is equal to 2,004,000. Provide the impairment journal entry, if needed.

C. Determine whether goodwill is impaired assuming that the fair value of the Revolve Division with goodwill 1 year after acquisition is equal to 1,618,000. Prepare the impairment journal entry if needed.