(b) The company's statement of financial position as of December 31, 2015 Be sure to give account titles and amounts, and briefly justify your presentation. 56 P12-5 (Goodwill, Impairment) On July 31, 2015, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (cash-generating unit) of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. Non-current assets Current assets $2,700,000 800,000 $3,500,000 Equity Non-current liabilities Current liabilities $2,400,000 500,000 600,000 Total assets Total equity and liabilities $3,500,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,750,000. Over the next 6 months of operations, the newly purchased division experienced operat- ing losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2015, Conchita reports the following statement of financial position information. Current assets Non-current assets (including goodwill recognized in purchase) Current liabilities Non-current liabilities 450,000 2,400,000 (700,000) (500,000) $1,650,000 Net assets It is determined that the recoverable amount of the Conchita Division is $1,850,000 Instructions (a) Compute the amount of goodwill recognized, if any, on July 31, 2015. (b) Determine the impairment loss, if any, to be recorded on December 31, 2015. o Asumenthat the rocorerable amount of the Conchita Division is S1 40000 istead of $1.8500 Determine the impairment loss, if any, to be recorded on December 31, 2015. (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement