E$12\mathrm{.}21($LO $))($Accounting for Goodwill$)$ On July $1,2023,$ Zoe Corporation purchased the

net assets of Soorya Company by paying $$415,$ ooo cash and issuing a $$50,$ ooo note payable to Soorya.

At July $1,2023,$ the statement of financial position of Soorya was as follows:

The recorded amounts all approximate current values except for land $($worth $$60,000),$ inventory $($worth

$$125,000),$ and trademarks $($worthless$).$ The receivables are shown net of an allowance for expected

credit losses of $$12,000.$ The amounts for buildings, equipment, and trademarks are shown net of

accumulated amortization of $$14,000,$$$23,000,$ and $$47,000,$ respectively.

Instructions

a$.$ Prepare the July $1,2023$ entry for Zoe to record the purchase.

b$.$ Assume that Zoe is a private entity and tested its goodwill for impairment on December $31,2024.$

Management determined that the reporting unit's carrying amount $($including goodwill$)$ was

$$500,000$ and that the reporting unit's fair value $($including goodwill$)$ was $$450,000.$ Determine if

there is any impairment and prepare any necessary entry on December $31,2024.$ Zoe applies ASPE.

c$.$ Repeat part $($a$),$ assuming that the purchase price was $$204,000,$ all paid in cash.

d$.$ Based on part $($a$),$ assume now that Zoe is a public entity and tested its goodwill for impairment on

December $31,2024.$ The cash$-$generating unit's values $($including goodwill$)$ are as follows:

Determine if there is any impairment and prepare any necessary entry on December $31,2024.$

e$.$ Digging Deeper Based on part $($a$),$ discuss factors that Zoe may have considered in deciding to

pay total consideration of $$465,$ ooo for Soorya.