On July 31, 2025, Cullumber Company paid $2,750,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Cullumber. Conchita reported the following balance sheet at the time of the acquisition. Current assets $860,000 Current liabilities $580,000 Noncurrent assets 2,450,000 Long-term liabilities 480,000 Total assets $3,310,000 Stockholders equity 2,250,000 Total liabilities and stockholders equity $3,310,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,475,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substa