Question 4 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) $1.050.000 Share capital-ordinary Inventory 375.000 Retained earnings $950,000 900,000 Receivables 650,000 Accounts payable 475,000 Cash Total assets 250.000 $2,325,000 Total equity and liabilities $2,325,000 An appraisal indicated that the fair value of the inventory was $355,000 and the fair value of the plant assets was $1,350,000. The agreed purchase price was $2,500,000, 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. Activate Windows Go to Settings to activate Windo- b. Assume that the carrying amount of Golden Company division's net assets, including goodwill is $2,700,000. The recoverable amount of the division is estimated to be $ 2,600,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2019.