In 2014, Camden Electronics purchased Raytheon Electronics, paying $2.0 million in a note payable. The market value of Raytheon Electronics' assets was $3.1 million, and Raytheon Electronics had liabilities of $1.8 million.
Required
1. Compute the cost of the goodwill purchased by Camden Electronics.
2. Record the purchase by Camden Electronics.
3. At 2014 year end, the annual review of goodwill value indicated no impairment of goodwill. Record the entry Camden will make for goodwill for 2014.
4. At 2015 year end, the annual review of goodwill value indicated a 40-percent impairment of the Raytheon Electronics goodwill. Record the entry for the goodwill impairment for 2015.