Use the information below for the following two questions: Cavani Manufacturing Company decided to expand further by purchasing Draxler Company. The balance sheet of Draader Company as of December 31, 2020 was as follows: Draxler Company Balance Sheet December 31, 2020 Assets Cash Accounts Receivable Inventory Property, Plant and Equipment (Net) Patent $210,000 550,000 275,000 1,025,000 110,000 Liabilities and Equities Accounts Payable Uneamed Revenue Notes Payable Common Stock Retained Earning $375,000 120,000 618,000 800,000 257,000 Inventory Property, Plant and Equipment (Net) Patent 550.000 275,000 1,025,000 110,000 Uneamed Revenue Notes Payable Common Stock Retained ning 120,000 618,000 300,000 257,000 An appraisal agreed to by the parties, indicated that their market value of the inventory was $350,000, the for market value of the property, plant and equipment was $1,225,000, and the fair market value of the patent was $35,000 Book values were equal to fair values for all other uses and liabilities Additionally, it was agreed that the fair value of Draxler's Customer List was $18.000. Draxler had never recognized any value for this internally generated lot. The agreed purchase price was $1,220,000,- this amount was paid in cash to the previous owners of Draxler Company How much goodwill should Cavani recognize from this acquisition? Show calculations to receive credit Words QUESTION 37 On December 31, 2021, Cavani tests Draader Division for impairment. The fair value of Druxer Division is determined to be $1,000,000 and the book value of the division, including goodwill, is $1,175,000. Prepare the journal entry to be recorded on Cavan's books. Show calculations to receive credit. Account Title Debit Credit Paragraph Aral e 3 (12pt)