On July 31, 2020, Wildhorse Company paid $2,850,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Wildhorse. Conchita reported the following balance sheet at the time of the acquisition.

Current assets		$750,000		Current liabilities		$600,000
Noncurrent assets		2,550,000		Long-term liabilities		500,000
Total assets		$3,300,000		Stockholders equity		2,200,000
				Total liabilities and stockholders equity		$3,300,000

It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,640,000. 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, 2020, Conchita reports the following balance sheet information.

Current assets		$480,000
Noncurrent assets (including goodwill recognized in purchase)		2,540,000
Current liabilities		(700,000	)
Long-term liabilities		(500,000	)
Net assets		$1,820,000

Finally, it is determined that the fair value of the Conchita Division is $1,850,000.

(a)

Correct answer iconYour answer is correct.

Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero, do not leave answer field blank. Enter 0 for the amount.)

The amount of goodwill

$enter The amount of goodwill in dollars

eTextbook and Media

List of Accounts

Attempts: 1 of 5 used

(b)

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Determine the impairment loss, if any, to be recorded on December 31, 2020. (If answer is zero, do not leave answer field blank. Enter 0 for the amount.)

The impairment loss

$enter the impairment loss in dollars

eTextbook and Media

List of Accounts

Attempts: 3 of 5 used

(c)

Incorrect answer iconYour answer is incorrect.

Assume that fair value of the Conchita Division is $1,764,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2020. (If answer is zero, do not leave answer field blank. Enter 0 for the amount.)

The impairment loss

$enter The impairment loss in dollars

Note, I have done Part A and B but part C is incorrect, there are a few on Chegg but they are incorrect. Thank you