Problem 12-04 (Part Level Submission) On July 31, 2020, Wildhorse Company paid $2,800,000 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 $720,000 Current liabilities $520,000 Noncurrent assets 2.500.000 Long-term liabilities 420.000 Total assets $3.220,000 Stockholders equity 2,280,000 Total liabilities and stockholders' equity $3,220,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchite was $2,485,000. 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 $440,000 Noncurrent assets (including goodwill recognized in purchase) 2,460,000 Current liabilities (640,000) Long-term liabilities 1440,000 Net assets $1,820,000 Finally, it is determined that the fair value of the Conchita Division is $1,850,000 , $ (a) Your 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 o for the amount.) The amount of goodwill 315,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Attempts: 1 of 5 used M Your answer is correct. Determine the impairment loss, if any, to be recorded on December 31, 2020. (If answer is zero, do not leave answer field blank. Enter o for the amount.) The impairment loss d SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXY LINK TO TEXT Attempts: 4 of 5 used (c) Your answer is correct. 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 o for the amount.) The impairment loss 56,000 SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit This loss will be reported in income as a separate line item before the subtotal M SHOW LIST OF ACCOUNTS