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  1. business
  2. accounting
  3. on may 31, 2026, armstrong company paid \$3,500,00

On May 31, 2026, Armstrong Company paid \$3,500,000 to acquire al of the common stock...

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Accounting

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On May 31, 2026, Armstrong Company paid \$3,500,000 to acquire al of the common stock of Hat Corporation, which became a division of Armstrong Hall reported the following balance sheet at the time of the acquisition: $600,000$500,000$2,500,000$3.600.000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hal was $3,100,000. At December 31, 2026, Hal reports the following balance sheet information: It is determined that the fair value of the Hall divesion is $2,200,000. Instructions (a) Compute the amount of goodwill recognized, if any, on May 31, 2026 . (b) Determine the impairment loss, if any, to be recorded on December 31, 2026. (c) Assume that the far value of the Hall division is $1,950,000 instead of $2,200,000. Prepare the journal entry to record the impairment loss, if any, on December 31 , 2026

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