On July $1,2023,$ Ayayai Corporation purchased the net assets of Soorya Company by paying $$416,000$ cash and issuing a $$45,100$ Assume that Ayayai 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 $$510,000$ and that the reporting unit's fair value $($including

goodwill$)$ was $$445,000.$ Determine if there is any impairment and prepare any necessary entry on December $31,2024.$ Ayayai

applies ASPE. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No entry" for the account titles and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,2024$ Prepare the July $1,2023$ entry for Ayayai Corporation to record the purchase. Assume that the purchase price was $$200,000,$ all

paid in cash. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required,

select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$ Based on part $($a$),$ assume now that Ayayai 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 $31,2024.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles

and enter $0$ for the amounts. List debit entry before credit entry.$)$

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 $$58,000),$ inventory $($worth $$120,000),$ and trademarks

$($worthless$).$ The receivables are shown net of an allowance for expected credit losses of $$11,000.$ The amounts for buildings,

equipment, and trademarks are shown net of accumulated amortization of $$13,000,$$$22,000,$ and $$46,000,$ respectively.

Prepare the July $1,2023$ entry for Ayayai to record the purchase. $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List all debit

entries before credit entries.$)$

Credit