In 2015, Giant Corp. purchased 100% of the assets and liabilities of Mini Ltd.for a cash price of $360,000:
Book Value Fair Market Value
Accounts Receivable (net) $100,000 $100,000
Inventory 180,000 160,000
PP&E (net) 700,000 720,000
Land 20,000 60,000
Liabilities 700,000 700,000
Required
1. Compute the amount of goodwill that will be recorded for the purchase of Mini Ltd
2. Give the journal entry for Giant to record the purchase
3. Assume Mini becomes a cash generating unit of Giant Corp. after the acquisition, and Giant Corp. is a public company that uses IFRS. In 2016, the fair value of Mini is estimated at $350,000; the value in use is $320,000; the costs to sell would be $5,000. Determine whether there is any impairment inMini, and prepare any journal entry, if necessary