On July $31,2024,$ Mexico Company paid

to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition.

It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $\backslash (\backslash$$ $860,000\backslash )$ higher than the book value. Over the next few months the division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December $31,2024,$ Conchita reports the following balance sheet information.

Instructions:

$($a$)$ Compute the amount of goodwill recognized, if any, on July $31,2024.$

$($b$)$ Determine the impairment loss, if any, to be recorded on December $31,2024.$ Determine the impairment loss, if any, to be recorded on December $31,2024.$