Problem 12-4 (Part Level Submission) On July 31, 2017, Cullumber Company paid $2,750,000 to acquire all of the common stock of Conchita Incorporated which became a division of Cullumber. Conchita reported the following balance sheet at the time of the acquisition Current assetS Noncurrent assets $580,000 480,000 2,250,000 $3,310,000 $860,000 Current liabilities 2,450,000 Longterm liabilities $3,310,000 Stockholders' equity Total assets Total liabilities and stockholders' equity It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,475,000 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, 2017, Conchita reports the following balance sheet information $480,000 2,170,000 (700,000) (500,000) Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities $1,450,000 Net assets 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 $130,000 above the carrying value Compute the amount of goodwil recognized, if any, on July 31, 2017 The amount of goodwill Attempts: 0 of 15 used The parts of this question must be completed in order. This part will be available when you complete the part above The parts of this question must be completed in order. This part will be available when you complete the part above The parts of this question must be completed in order. This part will be available when you complete the part above