Remaining Time: 1 hour, 29 minutes, 47 seconds Question Completion Status 10 11 12 On August 31, 2020, Southampton Co, acquired all of the common stock of Brighton Company, which became a division of Southampton Co, Brighton Company reported the following statement of financial position at the time of the acquisition: 2 5 Brighton Company Statement of Financial Position Amets Equity and Liabilities Plant assets (ne 1) Share capital $1,250,000 $1,050,000 ordinary Inventory Receivables Cash Total assets 235,000 750,000 360,000 $2.595,000 Retained earnings 970,000 Accounts payable 575.000 Total equity and liabilities $2.595.000 An appraisal indicated that the fair value of the inventory was $467,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $2,700,000, and 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 $2,900,000. The recoverable amount of the division is estimated to be $ 2,500,000. 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) D