P.12-4. instruction A,B,C,D

no Il Jupporting computations in good form. (AICPA adapted) GROUPWORK (Goodwill, Impairment) On July 31, 2017, Mexico Company paid $3,000,000 to acquire an stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance (L03,4,5) GR the common stor the time of the acquisition. at the Current assets Noncurrent assets Total assets $ 800,000 2,700,000 $3,500,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity $ 600,000 500,000 2.400,000 $3,500,000 determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,750,000. Over nonths of operations, the newly purchased division experienced operating losses. In addition, it now appears that it cate substantial losses for the foreseeable future. At December 31, 2017, Conchita reports the following balance sheet It was determined the next 6 months will generale substan imation 646 Chapter 12 Intangible Assets Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Net assets $ 450,000 2,400,000 (700,000) (500,000) $1,650,000 It is determined that the fair value of the Conchita Division is $1,850,000. 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 value. Instructions (a) Compute the amount of goodwill recognized, if any, on July 31, 2017 (b) Determine the impairment loss, if any, to be recorded on December 31, 2017. (0) Assume that fair value of the Conchita Division is $1,600,000 instead of $1,850,000. Determine the impairment loss, if any. to be recorded on December 31, 2017 (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. P12-5 (L01,2,3,4) EXCEL (Comprehensive Intangible Assets) Montana Matt's Golf Inc. was formed on July 1, 2016, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $770,000 cash for Old Master. At the time, Old Master's balance sheet reported assets of $650,000 and liabilities of $200,000 (thus owners equity was $450,000). The fair value of Old Master's assets is estimated to be $800,000. Included in the assets is the Old Master trade name with a fair value of $10,000 and a copyright on some instructional books with a fair value of $24,000. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years Instructions (a) Prepare the intangible assets section of Montana Matt's Golf Inc. at December 31, 2016. How much amortization expens is included in Montana Matt's income for the year ended December 31, 2016? Show all supporting computations (b) Prepare the journal entry to record amortization expense for 2017. Prepare the intangible assets section of Montana