4.5 points SA On June 31, 2019, Majestic Co. acquired all of the common stock of Golden Company, which became a division of Majestic Co. Golden reported the following statement of financial position at the time of the acquisition Golden Company Assets Plant assets (net) Statement of Financial Position Equity and Liabilities Inventory $1,050,000 375,000 Share capital-ordinary Retained earnings $950,000 900,000 Receivables Cash Total assets 650,000 250,000 $2.325.000 Accounts payable 475.000 Total equity and liabilities $2,325,000 An appraisal indicated that the fair value of the inventory was $355,000 and the fair value of the plant assets was $1,350,000. The agreed purchase price was $2,500,000, and this amount was paid in cash to the previous owners of Golden Company. Required: a. Prepare the entry to record the purchase of Golden Company. b. Assume that the carrying amount of Golden Company division's net assets, including goodwill is $2,700,000. The recoverable amount of the division is estimated to be $ 2,600,000. Prepare the journal entry to record the impairment loss (if any) on December 31, 2019