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Moving to another question will save this response Question 4 On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company,

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Moving to another question will save this response Question 4 On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton Co. Brighton Company reported the following a Brighton Company Statement of Financial Position Equity and Liabilities Share capital- $1.350.000 ordinary Assets Plant assets (ne (1) Inventory Receivables Casb $1,150,000 1,070,000 Retained earnings 235,000 800,000 422.000 Accounts payable 187.000 Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this am Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,550.000. The recoverable amount of the division is estimated to be S 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) NEW hton Company, which became a division of Southampton Co. Brighton Company reported the following statement of financial position at the time of t Brighton Company Statement of Financial Position Assets Equiry and Liabilitica Plant assets (ne $1,350,000 Share capital ordinary (1) $1,150,000 235,000 Retained earnings Inventory Receivables 1,070,000 58.7.000 800,000 Accounts payable Cash 422,000 Total assets $2.807.000 Total equity and Isabilities $2,807,000 ar value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, and this amount was paid in cash to the previous owners of Bright Comp including goodwill is $2,550,000. The recoverable amount of the division is estimated to be $3,000,000. Prepare the journal entry to record the impairment loss (if any) on De

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