On May $31,2026,$ Sheridan Company paid $$3,745,000$ to acquire all of the common stock of Sunland Corporation, which became a division of Sheridan. Sunland reported the following balance sheet at the time of the acquisition:

$\backslash$table$[[$Current assets,$$963,000,$Current liabilities,$$642,000$

$($b$)$

Determine the impairment loss, if any, to be recorded on December $31,2026.$

Impairment loss $

It is determined that the fair value of the Sunland division is $$2,354,000.$

$($a$)$

Compute the amount of goodwill recognized, if any, on May $31,2026.$

Amount of goodwill $On May $31,2026,$ Sheridan Company paid $$3,745,000$ to acquire all of the common stock of Sunland Corporation, which became a division of Sheridan. Sunland reported the following balance sheet at the time of the acquisition:

$\backslash$table$[[$Current assets,$$963,000,$Current liabilities,$$642,000$