On July $31,2020,$Crane$$Company paid

$$2,950,000$to acquire all of the common stock of Conchita

Incorporated, which became a division $($a reporting unit$)$

of$$Crane$.$ Conchita reported the following balance sheet at the

time of the acquisition.Current assets$$720,000$Current liabilities$$520,000$Noncurrent assets$2,650,000$Long$-$term liabilities$420,000$Total assets$$3,370,000$Stockholders$$ equity$2,430,000$Total liabilities and stockholders$$ equity$$3,370,000$

It was determined at the date of the purchase that the fair value

of the identifiable net assets of Conchita was $$2,650,000.$ 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 $31,2020,$ Conchita reports the following balance sheet

information.$$420,0002,300,000(640,000$