On July 31, 2012, Mexico Company paid 3,000,000 to acquire all of the common stock of Conchita Inc., which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition. Current assets 800,000 Current liabilities 600,000 Noncurrent assets 2,700,000 Long term liabilities 500,000 Total assets 3,500,000 Stockholders equity 2,400,000 Total liabilities and stockholders equity 3,500,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was 2,750,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2012, Conchita reports the following balance sheet information. Current assets 450,000 Noncurrent assets (including goodwill recognized in purchase) 2,400,000 current liabilities (700,000) longterm liabilities (500,000) net assets 1,650,000 It is determined that the fair value of the Conchita Division is 1,850,000. The recorded amount for Conchita's net assets (excluding goodwill) is the same as fair value except for property, plant, and equipment, which has a fair value of 150,000 above the carrying value. a) compute the amount of goodwill recognized, if any, on July 31, 2012 b) determine the impairment loss, if any, to be recorded on December 31, 2012 c) assume that fair value of the Conchita Division is 1,600,000 instead of 1,850,000. determine impairment loss, if any, to be recorded on December 31, 2012 d) prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. This is the template that I have to use. Instructions: (a) Compute the amount of goodwill recognized, if any, on July 31, 2012. Text as appropriate. Amount - Amount = Formula (b) Determine the impairment loss, if any, to be recorded on December 31, 2012. Enter text answer here. (c) Assume that fair value of the Conchita Division is $1,600,000 instead of $1,850,000 Determine the impairment loss, if any, to be recorded on December 31, 2012. Enter text as appropriate. Text title Amount Text title Amount Text title Amount Less: Account title Amount Formula Text title Formula Text title Amount Text title Formula "(d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement." Account title Amount Account title Amount Enter text answer here. I guess the reason that I am so confused is I don't know where to put the answers and a class mate said that it is a 25 loss. But on another question answered here it says its 200,000 for the loss. Please help