*Problem 12-4 On July 31, 2017, Carla Vista Company paid $2,700,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Carla Vista. Conchita reported the following balance sheet at the time of the acquisition. Current assets Noncurrent assets2 $730,000 Ourrent liabilities 2,400,000 Long-term liabilities $3,130,000 Sockoders' equity $570,000 470,000 2,090,000 30,000 Total assets Total lab lities and stockholders' equity t was determined at the date cf the purchase that the fair value of the identifiable net assets of Conchita was $2,455,000. Over the next 6 montns of operations, the newly purchased division experienced operaing losses. In addition, it now appears that it will generate substantial losses for the foresceable future. At December 31, 2017, Conchita reports the tol lowing balance shect information Current assets Noncurrent assets (cluding goodwill recognized in purchase) Current liabilitie5 Long-term liabilities $410,000 2,060,dod (700,000) (s0O,Do0) Nec assets $1,270,0O0 t is determined that the air value ofthe Conchita Division s$1,850 000. The eco ced amount for conchita's net assets e duding good l is same as air value, except for proper y planc and equipment, which has a air value si 50,000 above the carrying value. XYour answer is incorrect. Try again. Compute the amount of goodwill recognized, if any, on July 31, 2017 The amount or gcodl850,000 Your answer is correct. Determine the impairment loss, if any, to be recorded on December 31, 2017 The impairment loss Your answer is incorrect. Try again. Assume that fair value of the Conchita Division is $1,221,000 instead of $1,850,000. Determine the impairment loss, it any, to be recorded on December 31, 2017. The impairment loss Your answer is partially correct. Try again 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 0 for the amounts.) Account Titles and Explanation Debit Credit ?1 This loss will be reported in income as a separate line item before the s tinuin