View Policies Current Attempt in Progress On May 31, 2026, Carla Vista Company paid $3,815,000 to acquire all of the common stock of Sandhill Corporation, which became a division of Carla Vista. Sandhill reported the following balance sheet at the time of the acquisition: Current assets $981,000 Current liabilities $654,000 Noncurrent assets 2,943,000 Long-term liabilities 545,000 Stockholder's equity 2,725,000 Total assets $3,924,000 Total liabilities and stockholder's equity $3,924,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Sandhill was $3,379,000. At December 31, 2026, Sandhill reports the following balance sheet information: Current assets $872,000 Noncurrent assets (including goodwill recognized in purchase) 2,616,000 Current liabilities (763,000) Long-term liabilities (545,000) Net assets $2,180,000 It is determined that the fair value of the Sandhill division is $2,398,000. (a) Compute the amount of goodwill recognized, if any, on May 31, 2026. Amount of goodwill e Textbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer (b ) Week 1: Quiz Question 2 of 2 - /15 1 : e Textbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit Answer (c) Assume that the fair value of the Sandhill division is $2,125,500 instead of $2,398,000. Prepare the journal entry to record the impairment loss, if any, on December 31, 2026. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Debit Credit e Textbook and Media List of Accounts Save for Later Attempts: 0 of 2 used Submit