Remaining Time: 1 hour, 57 minutes, 35 seconds. A Question Completion Status: 4 5 6 7 8 9 10 11 12 Question 10 WEBCAM RECORDING 4.5 points Save Answer 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) $1,250,000 Share capital-ordinary $1,045,000 Inventory 370,000 Receivables 750,000 Retained earnings Accounts payable 1,000,000 675.000 Cash Total assets 350,000 $2.720,000 Total equity and liabilities $2,720,000 An appraisal indicated that the fair value of the inventory was $375,000 and the fair value of the plant 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. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I US Paragraph v Arial V 10pt === E A Tx 2X TT TT < + RB IT E Q = = = =