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stockholders of flint company, culver company, and concord company are considering alternative arrangements for a business combination. balance sheets and fair values of each company's assets on october $1,2024$ were as follows:

Flint Culver Concord

Assets $$3,891,440$ $$7,475,400$ $$948,580$

Liabilities $$2,010,360$ $$2,183,350$ $$258,730$

Common stock, $$20$ par value $2,019,9001,808,700545,040$

Other contributed capital $0598,610188,470$

Retained earnings $($deficit$)(138,820)2,884,240(43,660)$

Total equitites $$3,891,440$ $$7,475,400$ $$948,580$

Fair values of assets $$4,173,100$ $$8,992,300$ $$1,308,940$

Flint company shares have a fair value of $$50.$ 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.

b$.$ Assume, further, that the acquistion was consumated on october $1,2024,$ as described above. However, by the end of $2025,$ Flint was concerned that the fair values of one or both of the acquired units had deteriorated. To test for impairment, Flint decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting units $($Culver and Concord$).$ Flin accumulated the following data:

Year $2055-$ culver Present value of future cash flows $-$ $$6,510,060$ carrying value of identifiable $-$ $$6,332,430$ Fair value identifiable net assets $$6,342,430$

concord $-$ Present value of future cash flows $-$ $$1,895,700$ carrying value of identifiable $-$ $$1,194,720$ Fair value identifiable net assets $$994,720$

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 test is satisfied or bypassed$).$

Account titles and explanation debit credit