The Eaton Manufacturing Company decided to expand further by purchasing the Ball Company. The balance sheet of Ball Company as of December 31, 2013 was as follows:

Ball Company

Balance Sheet 12/31/13

Assets		Liabilities & Equity
Cash	$ 212,500	Accounts payable	$ 325,000
Receivables	450,000	Common stock	800,000
Inventory	275,000	Retained earnings	837,500
Plant assets (net)	1,025,000
Total assets	$1,962,500	Total equities	$1,962,500

An appraisal, agreed to by the parties, indicated that the book values and fair market values of the net assets were the same except for inventory which had a fair market value of $350,000 and the plant assets which had a fair market value of $1,225,000. The agreed purchase price was $2,100,000, and this amount was paid in cash.

Shortly after the acquisition, the newly acquired Company (a reporting unit) started experiencing operating losses due to unexpected competition which will continue. At December 31, 2014, the book value of the reporting unit was $2,000,000, the fair value of the reporting unit was $1,900,000 and the fair value of the identifiable net assets within the reporting unit were $1,800,000.

REQUIRED:

• Determine the amount of goodwill in the purchase price of $2,100,000.

• Determine the impairment loss (if any) to be recorded on December 31, 2014.