On July 31, 2017, Blossom Company paid $2,950,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Blossom Conchita reported the following balance sheet at the time of the acquisition Current assets $710,000 Current liabilities $510,000 Noncurrent assets 2,650,000 Long term liabilities 410,000 Total assets $3,360,000 Stockholders equity 2,440,000 Total liabilities and stockholders equity $3,360,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,655,000 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, 2017, Conchita reports the following balance sheet information Current assets $430,000 Noncurrent assets (including goodwill recognized in purchase) 2,350,000 Current liabilities (700,000 ) Long term liabilities (500,000 ) Net assets $1,580,000 It is determined that the fair value of the Conchita Division is $1,850,000 The recorded amount for Conchitas net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $100,000 above the carrying value 1 Assume that fair value of the Conchita Division is $1,449,000 instead of $1,850,000 Determine the impairment loss, if any, to be recorded on December 31, 2017 The impairment loss 2 Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit This loss will be reported in income as a separate line item before the subtotal Income from Discontinued OperationsIncome From Continuing OperationsCost of Goods SoldExtraordinary Items

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On July 31, 2017, Blossom Company paid $2,950,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Blossom. Conchita

On July 31, 2017, Blossom Company paid $2,950,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Blossom. Conchita reported the following balance sheet at the time of the acquisition.

Current assets	$710,000	Current liabilities	$510,000
Noncurrent assets	2,650,000	Long-term liabilities	410,000
Total assets	$3,360,000	Stockholders equity	2,440,000
		Total liabilities and stockholders equity	$3,360,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,655,000. 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, 2017, Conchita reports the following balance sheet information.

Current assets	$430,000
Noncurrent assets (including goodwill recognized in purchase)	2,350,000
Current liabilities	(700,000	)
Long-term liabilities	(500,000	)
Net assets	$1,580,000

It is determined that the fair value of the Conchita Division is $1,850,000. The recorded amount for Conchitas net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $100,000 above the carrying value.

1. Assume that fair value of the Conchita Division is $1,449,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2017. The impairment loss: ?

2. Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)