Question 1 4.5 points Save Awar 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 Retained earnings 1,000,000 Receivables 750,000 Accounts payable 675.000 Cash Total assets 150.000 $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: 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+F10/10.000