Extracted text: On January 1, 2014, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech's fair value was allocated among its net assets as CPA skills follows: Fair value of consideration transferred for ChipTech Book value of ChipTech: Common stock and Additional Paid-in Capital (APIC) Retained earnings $670,000 $130,000 370,000 500,000 Excess fair value over book value to 170,000 Trademark (10-year remaining life) Existing technology (5-year remaining life) $ 40,000 80,000 120,000 Goodwill 50,000 The December 31, 2015, trial balances for the parent and subsidiary follow (there were no intra-entity payables on that date): ChipTech Innovus S (990,000) 500,000 100,000 55,000 (40,000) S(210,000) 90,000 5,000 18,000 -0- Ravenues Cost of goods sold Depreciation expense Amortization expense Dividend income S(97,000) S (375,000) Net income Retained earmings 1/1/15 S(1,555,000) 375,000) 250,000 $(450,000) (97,000) 40,000 Net income Dividends dedared Retained eamings 12/31/15 S(1,680,000) $(507,000) Currant assets Investment in ChipTech Equipment (net) Trademark Existing technology Goodwill S 960,000 670,000 765,000 235,000 355,000 225,000 100,000 45,000 450,000 0 S 3,080,000 S (780,000) (500,000) (120,000) (1,680,000) Total assets 725,000 Liabilities Common stock Additional paid-in capital Retained eamings 12/31/15 (88.000) (100,000) (30,000) (507,000) Total liabilities and equity $(3,080,000) $725,000) Required a. Using Excel, compute consolidated balances for Innovus and ChipTech Either use a worksheet approach or compute the balances directly b. Prepare a second spreadsheet that shows a 2015 impairment loss for the entire amount of goodwill from the ChipTech acquisition.