4.5 points Save Forwer 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: Assets Plant assets (net) Inventory Receivables Cash Total assets Golden Company Statement of Financial Position $1,250,000 Equity and Liabilities Share capital-ordinary $1,045,000 370,000 750,000 350,000 $2,720,000 Retained earnings Accounts payable 1,000,000 675,000 Total equity and liabilities $2,720,000 An appraisal indicated that the fair value of the inventory was $375,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $3,000,000, 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 $2,800,000. The recoverable amount of the division is estimated to be $ 3,200,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2019.