Using Excel with explanations

4 6 2 On July 31, 2017, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita 3 Incorporated, which became a division of Mexico. Conchita reported the following balance sheet at the time of the acquisition 5 Current assets $ 800,000 Current liabilities $ 600,000 7 Noncurrent assets 2,700,000 Long-term liabilities 500.000 8 Total assets S 3.500.000 Stockholders' cquity 2,400,000 9 Total liabilities and stockholders 10 cquity $ 3.500.000 11 12 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita 13 was $2,750,000. Over the next 6 months of operations, the newly purchased division experienced 14 operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable 15 future. At December 31, 2017, Conchita reports the following balance sheet information 16 17 18 Current assets $ 450,000 19 Noncurrent assets (including goodwill recognized in purchase) 2.400,000 20 Current liabilities (700,000) 21 Long-term liabilities (500,000) 22 Net assets s 1,650,000 23 24 It is determined that the fair value of the Conchita Division is $1,850,000. The recorded amount for 25 Conchita's net assets (excluding goodwill) is the same as fair value, except for property, plant, and 26 equipment, which has a fair value $150,000 above the carrying value. 27 28 Instructions 29 (a) Compute the amount of goodwill recognized, if any, on July 31, 2017 30 31 2 3 4 s (b) Determine the impairment loss, if any, to be recorded on December 31, 2017 (c) Assume that fair value of the Conchita Division is $1,600,000 instead of $1,850.000. Determine the impairment loss, if any, to be recorded on December 31, 2017 (d) Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement, Debit Credit Reporting of the impairment loss