Question 12 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 reponed the following datement of final position at the time of the quisiti Golden Company Azt Plast assets (net) State of Financial Position Ecity and Lublic $1,250,000 Share capital-ordinary $1,045,000 Inventory Receivables Cash Total assets 370.000 Retained eamings 750,000 Accounts payable 1,000,000 675.000 350,000 $2.720.000 Total equity and liabilities $2.720.000 An appraisal indicated that the fair value of the invectory was $375,000 and the fair value of the plast assets was $1,450,000. The agreed purchase price was $3,000,000, 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 $2,800,000. The recoverable amount of the division is estimated to be $ 3,200,000 Prepare the journal entry to record the impairment loss (if any) on December 31, 2019.