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In late July 2020, Bridgeport Ltd., a private company, pald $2.10 million to acquire all of the net assets of Sarasota Corp., which then became

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In late July 2020, Bridgeport Ltd., a private company, pald $2.10 million to acquire all of the net assets of Sarasota Corp., which then became a division of Bridgeport. Sarasota reported the following statement of financial position at the time of acquisition: It was determined at the date of the purchase that the fair value of the identifiable net assets of Sarasota was $1.60milli. Over the next six months of operations, the new division had operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, the fair value of the Sarasota Division is $1.840,000, and the division reports the following statement of financial position information: Assume that Bridgeport Ltd prepares financial statements in accordance with ASPE. Calculate the amount of goodwill, if any, that should be recognized in late July 2020. Goodwill Determine the loss on impairment, if any, to be recognized on December 31,2020. (If an answer is zero, piease enter 0 . Do not leave any fieids blank.) Impairment loss $ Assume that the fair value of the Sarasota Division on December 31, 2020, is $1.30 million. Determine the loss on impairment. if any, that would be recognized. Impairment loss Prepare the journal entry to record the loss on impaiment, if ary. (Credit account tities are datomatically indented when the amount is entered. Do not indent manualfy. If no entry is required, select "No fatry" for the account tities and enter of for the amounts.)

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