Stockholders of Whispering Winds Company, Swifty Company, and Sheffield Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Whispering Winds Swifty Sheffield Assets $3,917,360 $7,461,800 $950,400 Liabilities $2,031,130 $2,213,370 $262,170 Common stock, $20 par value 2,003,300 1,796,240 539,620 Other contributed capital -0- 596,570 189,190 Retained earnings (deficit) (117,070) 2,855,620 (40,580) Total equities $3,917,360 $7,461,800 $950,400 Fair values of assets $4,160,570 $9,043,400 $1,289,640 Whispering Winds Company shares have a fair value of $51. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. Prepare a balance sheet for the business combination. Assume the following: Whispering Winds Company acquires all the assets and assumes all the liabilities of Swifty and Sheffield Companies by issuing in exchange 140,570 shares of its common stock to Swifty Company and 40,160 shares of its common stock to Sheffield Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) WHISPERING WINDS COMPANY Balance Sheet For the Month Ended October 1.2024 Goodwill Assets (except goodwill) Assets Total Assets Liabilities and Stockholders' Equity Liabilities Common Stock Other Contributed Capital Retained Earnings $ 1359730 14250400 15610130 4506670 5617900 5602630 -117070 Total Liabilities and Stockholders' Equity 15610130 Assume, further, that the acquisition was consummated on October 1, 2024, as described above. However, by the end of 2025, Whispering Winds was concerned that the fair values of one or both of the acquired units had deteriorated. To test for impairment, Whispering Winds decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting units (Swifty and Sheffield). Whispering Winds accumulated the following data: Carrying Value of Identifiable Fair Value Identifiable Year 2055 Present Value of Future Cash Flows Net Assets* Net Assets Swifty $6,493,700 $6,382,710 $6,392,710 Sheffield $1,892,910 $1,188,020 $988,020 * Identifiable Net Assets do not include goodwill. Prepare the journal entry, if needed, to record goodwill impairment at December 31, 2025. Use FASB's simplified approach to test for goodwill impairment (assume that the qualitative test is satisfied or bypassed). (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Account Titles and Explanation Impairment Loss Debit 353850 Credit Goodwill 353850