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9:29 ..14 ch 12 hw 2021 FA.xlsx Patents Goodwill Sheet3 On July 31, 2021, Mexico Company paid to acquire all of the common stock of

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9:29 ..14 ch 12 hw 2021 FA.xlsx Patents Goodwill Sheet3 On July 31, 2021, Mexico Company paid to acquire all of the common stock of Conchita Incorporated, which became a division following balance sheet at the time of the acquisition Current assets $800,000 Current abilities Noncurrent assets $2,700,000 Long-term liabilities Total assets $3,500,000 Stockholders' equity Total liabilities and stockholders' It was determined at the date of the purchase that the fair value of the identifiable net $850,000 higher than the book value. Over the next few months the division ex losses. In addition, it now appears that it will generate substantial losses for the forese Conchita reports the following balance sheet information Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities It is determined that the fair value of the Conchita Division is Instructions: (a) Compute the amount of goodwill recognized, if any, on July 31, 2021. (b) Determine the impairment loss, if any, to be recorded on December 31, 2021 (c) Assume that fair value of the Conchita Division is $1.575.000 Determine the impairment loss, if any, to be recorded on December 31, 2021 (d) Prepare the journal entry to record the impairment loss, if any, and indicate v in the income statement. 9:29 ..14 ch 12 hw 2021 FA.xlsx Patents Goodwill Sheet3 paid $3,370.000 of Conchita Incorporated, which became a division of Mexico. Conchita reported the of the acquisition $800.000 Current liabilities $600,000 $2,700,000 Long-term liabilities $500.000 $3,500,000 Stockholders' equity $2.400,000 Total liabilities and stockholders' equity $3,500,000 purchase that the fair value of the identifiable net assets of Conchita was k value. Over the next few months the division experienced operating at it will generate substantial losses for the foreseeable future. At December 31, 2021, ce sheet information $500.000 ill recognized in purchase) $2.500.000 ($800,000 15550,000) the Conchita Division is $1,700,000 vill recognized, if any, on July 31, 2021. s, if any, to be recorded on December 31, 2021, instead of $1,700,000 Conchita Division is $1,575.000 ay to be recorded on December 31, 2021. cord the impairment loss, if any, and indicate where the loss would be reported

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