Problem 12-5 On July 31, 2014, Mexico Company paid $3,062,100 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 $860,600 Current liabilities 2,745,600 Long-term liabilities $3,606,200 Stockholders' equity $622,500 549,500 2.434,200 3,606,200 Current assets Noncurrent assets 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 $2,785,700. 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, 2014, Conchita reports the following balance sheet information Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities $455,000 2,459,800 (703,300) (518,700) Net assets $1,692,800 It is determined that the fair value of the Conchita Division is $1,862,500. 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 $158,000 above the carrying value Compute the amount of goodwill recognized, if any, on July 31, 2014 The amount of goodwill SHOW LIST OF ACCOUNTS LINK TO TEXT