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On July 31,2025, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of
On July 31,2025, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Blossom. Conchita reported the following balance sheet at the time of the acquisition. It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,590,000,0. 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 31.2025. Canchita reports the following balance shoet information, Finally, it is determined that the fair value of the Conchita Division is $1,850,000. Compute the amount of goodwill recognized, if any, on hily 31.2025, fof answer is zeno, do not leave answer field blunk Enter Of for the amount.) The amouint of soodwill is eTexthook and Media List of Accotints Attempts 0 of 5 uned (b) Ofor the amoiert? Assume that tair value of the Conchita Division is $1,460,000 instead of $1,850,000. Determine the impairment loss, if any, to be The impairment loss $ List of Accounts Attemptsi 0 of 5 used (d) Prepare the journal entyv to rocord the impaiment loss, it any, and indicate where the loss would be reported in the income itatement (Credit account titles ore outomotically indented when omount is entered. Do not indent moruali). if no entry lis required, is ied
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