On August 31 , 2020 , Southampton acquired all of the common stock of Brighton Company , which became a division of Southampton Co. Brighton Company reported the following statement of financial position at the time of the acquisition : C_{O} AssetsPlant assets ( ne t ) Inventory Receivables Brighton Company Statement of Financial Position Equity and Liabilities Share capital $ 1,350,000 ordinary 235,000 Retained earnings 800,000 Accounts payable 422,000 $ 1,150,000 aligned 1,070,000\\ underline 887.000 aligned CashTotal assets $ 2,807,000 Total equity and liabilities $ 2,807,000 \$1,550,000 . The agreed purchase price was \$3,600,000, and this An appraisal indicated that the fair value of the inventory was $ 372,000 and the fair value of the plant assets was amount was paid in cash to the previous owners of Brighton Company 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 . \$2,50,000; The recoverable amount of the division is estimated to be Prepare the journal entry to record the impairment loss on December . 3, 000, 000; (|f any); 31, 2020

Question 5 4.5 points Save Arswe 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 statement of financial position at the time of the acquisition Brighion Company Statement of Financial Position Equity and Liabilities Assets Plant assets (ne 1) $1,350,000 Share capital ordinary $1,150,000 1,070,000 Retained earnings Inventory Receivables Cash 235,000 800,000 Accounts payable 422.000 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 amount was paid in cash to the previous owners of Brighton Company Required: a Prepare the entry to record the purchase of Brighton Company FACtvate Windows 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 estimmed to be S 3,000,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2020. Go to Settings to activate Wied