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Testbank Exercise 148 On July 1, 2020, Pharoah Corporation acquired Sheridan Company for $954,000 cash. At the time of purchase, Sheridan's balance sheet showed assets

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Testbank Exercise 148 On July 1, 2020, Pharoah Corporation acquired Sheridan Company for $954,000 cash. At the time of purchase, Sheridan's balance sheet showed assets of $821,500 and liabilities of $265,000. The fair value of Sheridan's assets is estimated to be $1,007,000. Compute the amount of goodwill acquired by Pharoah. Amount of goodwill $ SHOW LIST OF ACCOUNTS On December 31, the fair value of Sheridan is estimated to be $763,200. The carrying value of Sheridan's net identifiable assets, including the goodwill, at year-end is $795,000. Prepare Pharoah's journal entry, if necessary, to record impairment of goodwill. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

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