In late July 2020, Sarasota Ltd., a private company, paid $1.9 million to acquire all of the net assets of Bridgeport Corp., which then became a division of Sarasota. Bridgeport reported the following statement of financial position at the time of acquisition: Current assets Non-current assets $415,000 1,335,000 Current liabilities Long-term liabilities Shareholders' equity $300,000 265,000 1,185,000 $1,750,000 $1,750,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Bridgeport was $1.7 million. 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 Bridgeport Division is $1,825,000, and the division reports the following statement of financial position information: Current assets Non-current assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Net assets $461,000 2,300,000 (704,000) (527,000) $1,530,000 Assume that Sarasota Ltd. prepares financial statements in accordance with ASPE a) Calculate the amount of goodwill, if any, that should be recognized in late July 2020. b) Determine the loss on impairment, if any, to be recognized on December 31, 2020. c) Assume that the fair value of the Bridgeport Division on December 31, 2020, is $1.3 million. Determine the loss on impairment, if any, that would be recognized. d) Prepare the journal entry to record the loss on impairment, if any. Dec. 31 2020