On may 31, 2021, crane company paid $3,955,000 to acquire all of the common stock of cullumber corporation, which became a division of crane. cullumber reported the following balance sheet at the time of the acquisition:
current assets $ 1,017,000
current liabilities $ 678,000
noncurrent assets 3,051,000
long-term liabilities 565,000
stockholder's equity 2,825,000
total assets $4,068,000
total liabilities and stockholder's equity $4,068,000
it was determined at the date of the purchase that the fair value of the identifiable net assets of cullumber was $3,503,000. at december 31, 2021, cullumber reports the following balance sheet information:
current assets $ 904,000
noncurrent assets (including goodwill recognized in purchase) 2,712,000
current liabilities (791,000 )
long-term liabilities (565,000 )
net assets $2,260,000
it is determined that the fair value of the cullumber division is $2,486,000.
required:
1. compute the amount of goodwill recognized, if any, on may 31, 2021. (if answer is zero, do not leave answer field blank. enter 0 for the amount.)
2. determine the impairment loss, if any, to be recorded on december 31, 2021.