Problem 12-4 On July 31, 2017. Ivanhoe company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which become a division of Ivanhoe Conchita reported the following balance sheet at the time of the acquisition. Current assets $750,000 Current liabilities $500,000 Noncurrent assets 2.700,000 Long-term liabilities 400,000 Total assets $3,450,000 Stockholders' equity 2,550,000 Total abilities and stockholders' equity $3,450,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,255,000. 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 11, 2017, Conchita reports the following balance sheet Information Current assets $480,000 Noncurrent assets (including goodwill recognized in purchase) 2,330,000 Current liabilities (660,000) Long-term liabilities (450,000) Net assets $1,690,000 It determined that the fair value of the Conchita Division is $1,350,000. The recorded amount for Conchitas net sets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $149,000 above the carrying value Your answer is correct Compute the amount of goodwill recognized, if any, on July 31, 2017 The amount of goodwil 245000 SHOW LIST OF ACCOUNT CALCULATOR PRINTER VERSION HACK NI Your answer is incorrect. Try again Assume that fair value of the Conchita Division is 51,642,000 instead of $1,850,000. Determine the Impairment loss, if any, to be recorded on December 31, 2017 The impairment loss SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TOT 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 o for the amounts.) Account Titles and Explanation Debit Credit Los on Impairment Goodwill Income From Continuing Operations This loss will be reported in income as a separate line item before the subtotal Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINE TO TEXT