Problem $3-16($Algo$)($LO $3-6)$

Arcadia, Incorporated, acquired $100$ percent of the voting shares of Bruno Company on January $1,2023.$ In exchange, Arcadia paid $\backslash (\backslash$$ $461,000\backslash )$ in cash and issued $100,000$ shares of its own $\backslash (\backslash$$ $1\backslash )$ par value common stock. On this date, Arcadia's stock had a fair value of $\backslash (\backslash$$ $15\backslash )$ per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation. Bruno's assets and liabilities are assigned to a new reporting unit.

The following shows fair values for the Bruno reporting unit for January $1,2023,$ along with respective carrying amounts on December $31,2024.$

Note: Parentheses indicate a credit balance.

Required:

a$.$ Prepare Arcadia's journal entry to record the assets acquired and the liabilities assumed in the Bruno merger on January $1,2023.$

b$.$ On December $31,2024,$ Arcadia opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Bruno reporting unit is $\backslash (\backslash$$ $1,700,000\backslash ).$ What amount of goodwill impairment, if any, should Arcadia recognize on its $2024$ income statement?

Complete this question by entering your answers in the tabs below.

Prepare Arcadia's journal entry to record the assets acquired and the liabilities assumed in the Bruno merger on January $1,2023.$ Note: Enter cash paid and cash received as two separate amounts. If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record the assets acquired and the liabilities assumed in the Bruno merger on January $1,2023.$

Note: Enter debits before credits. Complete this question by entering your answers in the tabs below.

On December $31,2024,$ Arcadia opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value of the entire Bruno reporting unit is $\backslash (\backslash$$ $1,700,000\backslash ).$ What amount of goodwill impairment, if any, should Arcadia recognize on its $2024$ income statement?

Goodwill impairment loss