Brief Exercise 12-8 Monty Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $350,000.

Brief Exercise 12-8

Monty Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $350,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $710,000. The fair value of the division is estimated to be $646,000 and the implied goodwill is $286,000.

Prepare Monty journal entry to record impairment of the goodwill.