DALL Question 7 (12 marks) On July 1, 2005 Sunset Farms purchased the net assets of Baskins by paying $350,000 cash and issuing a $100,000 note payable to Baskins. At June 30, 2005 the ledger of Baskins was as follows: Cash $50,000 Accounts payable $200,000 Receivables 90,000 Capital 335.000 Inventory 200,000 $535.000 Land 40,000 Buildings (net) 75,000 Equipment (net) 70,000 Trademarks (net) 10.000 $535,000 The recorded amounts are approximate current values except for land (worth $60,000) inventory (worth $225,000) and trademarks (worthless $0 ) Required: a) Prepare the July 1, 2005 entry for Sunset to record the purchase b) Assume that Sunset tested Goodwill for impairment on Dec. 31/06 and determined that it had implied value of $60,000. Prepare the entry, if any, on Dec. 31/06