Problem 3-16 (Static) (LO 3-6) Alfonso Inc. acquired 100 percent of the voting shares of BelAire Company on January 1, 2

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Problem 3-16 (Static) (LO 3-6)
Alfonso Inc. acquired 100 percent of the voting shares of
BelAire Company on January 1, 2020. In exchange, Alfonso paid
$198,000 in cash and issued 100,000 shares of its own $1 par value
common stock. On this date, Alfonso’s stock had a fair value of $15
per share. The combination is a statutory merger with BelAire
subsequently dissolved as a legal corporation. BelAire’s assets and
liabilities are assigned to a new reporting unit.
The following shows fair values for the BelAire reporting unit
for January 1, 2020 along with respective carrying amounts on
December 31, 2021.
Note: Parentheses indicate a credit balance.
Prepare Alfonso’s journal entry to record the assets acquired
and the liabilities assumed in the BelAire merger on January 1,
2020. Note: Enter cash paid and cash received as two separate
amounts.
On December 31, 2021, Alfonso opts to forgo any goodwill
impairment qualitative assessment and estimates that the total fair
value of the entire BelAire reporting unit is $1,325,000. What
amount of goodwill impairment, if any, should Alfonso recognize on
its 2021 income statement?