On July 31, 2014, Mexico Company paid S3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition. Current assets S 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 S3,500,000 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, 2014, Conchita reports the following balance sheet formation. 450.000 Current assets Noncurrent assets (including goodwill recognized in purchase) 2400.000 Current liabilities 700,000) Long-term liabilities 500,000) Net assets S1,650.000 It is determined that the fair value of the Conchita Division is SI,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 $150,000 above the carrying valu (a) Compute the amount of goodwill recognized, if any, on July 31, 2014. (b) Determine the impairment loss, if any, to be recorded on December 31, 2014. (e) Assume that fair value of the Conchita Division is$1,600,000 instead ofS1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2014. (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement