On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $430 million. The fair valu
e of Harman's identifiable tangible and intangible assets totaled $519 million, and the fair value of liabilities assumed by Pesky was $150 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: Fair value of Harman, Inc.$410millionFair value of Harman's net assets (excluding goodwill) 370millionBook value of Harman's net assets (including goodwill) 422million Required:1. Determine the amount of goodwill that resulted from the Harman acquisition.2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2021, if any.3. If an impairment loss is required, prepare the journal entry to record the loss.
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