Question 11 4.5 points On June 31, 2019, Majestic Co. acquired all of the common stock of Golden Company, which became a division of Majestic Co. Golden reported the following statement of financial position at the time of the acquisition: Golden Company Statement of Financial Position Assets Equity and Liabilities Plant assets (net) $1,050,000 Share capital-ordinary $950,000 Inventory 375,000 Retained earnings 900,000 Receivables Cash Total assets 650,000 250,000 $2.325,000 Accounts payable 475.000 Total equity and liabilities $2.325.000 An appraisal indicated that the fair value of the inventory was $355,000 and the fair value of the plant assets was $1,350,000. The agreed purchase price was $2,500,000, and this amount was paid in cash to the previous owners of Golden Company. Required: a. Prepare the entry to record the purchase of Golden Company. b. Assume that the carrying amount of Golden Company division's net assets, including goodwill is $2,700,000. The recoverable amount of the division is estimated to be $ 2,600,000. Prepare the journal entry to record the impairment loss (if any) on December 31, 2019. For the toolbar, press ALT+F10 (PC) or ALT-FN-F10 (Mac). BIUS Paragraph Arial 10pt I XO ***