In 2020, Camden Electronics purchased Winston Electronics, paying \(\$ 2.4\) million in a note payable. The market value of Winston Electronics' assets was \(\$ 3.1\) million, and Winston 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 2020 year-end, the annual review of goodwill value indicated no impairment of goodwill. Record the entry Camden will make for goodwill at December 31, 2020.

4. At 2021 year-end, the annual review of goodwill value indicated a 40 percent impairment of the Winston Electronics goodwill. Record the entry for the goodwill impairment at December 31, 2021.