Question Completion Status Che Summa to compare this assessment 12 of 1 Question 12 On August 31, 2020, Southampton Co. acquired all of the common stock of Brighton Company, which became a division of Southampton C following statement of financial position at the time of the acquisition: Brighton Company Statement of Financial Position Equity and Liabilities $1,150,000 Assets Plant assets (ne 1) Inventory Receivables Cash $1,350,000 235,000 800,000 422,000 Share capital- ordinary Retained earnings 1,070,000 387,000 Accounts payable Total assets $2.807.000 Total equity and liabilities $2.807.000 An appraisal indicated that the fair value of the inventory was $372,000 and the fair value of the plant assets was $1,550,000. The agreed purchase price was $3,600,000, w this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,550,000. The recoverable amount of the division is estim be $3,000,000. Prepare the journal entry to record the impairment loss (if any) on December 31, 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN +F10 (Mac). BIUS Paragraph Arial 10pt Av 2- I. XO MacBook Pro B