P12-5 (Goodwill, Impairment) On July 31, 2014, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition.

Current assets $800,000 Current liabilities $600,000

Noncurrent assets $2,700,000 Long-term liabilities $500,000

Total assets $3,500,000 Stockholders