Question 19 Cincinnatus Company paid $5,000,000 to acquire theSproyer Corporation, which became a division of Cincinnatus. The acquisition wasfinalized January 1, 2016. Sproyer reported the following balance sheet at the time of the acquisition: Not yet answered Points out of 3.00 Current assets $400,000 Noncurrent assets 4.900.000 Total assets $5.300.000 Current liabilities $200,000 $ Long-term liabilities 425,000 Stockholders' equity 4675.000 Total liabilities and stockholders' equity $5.300.000 P Flag question At the date of the purchase the fair value of the identifiable net assets of Sproyer was $4,800,000. At December 31, 2016, Sproyer reported the following balance sheet information: Current assets Noncurrent assets (including goodwill recognized in purchase) Current liabilities Long-term liabilities Stockholders' Equity DR (CR) $500,000 4,650,000 (200,000) (500,000) (4,450,000) The 12/31/16 fair value of the Sproyer division was determined to be $4,375,000. The recorded amount for Sproyer's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $75,000 above the carrying value. On 12/31/16, the recorded Loss due to Impairment is: Select one: a. $100,000 b. $125,000 c. $150,000 d. $50,000 e. $75,000