On May 28, 2021, Pesky Corporation acquired all of the

On May 28, 2021, Pesky acquired all of the outstanding of Harman, Inc., for $420 million. The fair value of Harman’s identifiable tangible and totaled $512 million, and the fair value of liabilities assumed by Pesky was $150 million. Pesky performed a impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information:

Fair value of Harman, Inc. …………………………………………..$400 million
Fair value of Harman’s net assets (excluding ) ….370 million
Book value of Harman’s net assets (including ) …410 million

Required:
1. Determine the amount of that resulted from the Harman acquisition.
2. Determine the amount of 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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