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10 11 12 Question 4 On June 31, 2019. Majestic Co. acquired all of the common stock of Golden Company, which became a division of Majestic Co. Golden reported 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 $950,000 Inventory 375,000 Retained earnings 900,000 Receivables 650.000 Accounts payable 475.000 Cash 250.000 Total assets $2.325.000 Total equity and liabilities $2.325,000 An appraisal indicated that the fair value of the inventory was S355,000 and the fair value of the plant assets was $1,350,000. The agreed pum amount was paid in cash to the previous owners of Golden Company 45 points the common stock of Golden Company, which became a division of Majestic Co. Golden reported the following statement of financial any 1 Position Equity and Liabilities capital-ordinary $950,000 ed earnings 900.000 nts payable 475.000 quity and liabilities $2.325.000 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 Golden Company PP the fair value of the inventory was $355,000 and the fair value of the amount was paid in cash to the previous owners of Golden Company Required: a. Prepare the entry to record the purchase of Golden Company. b. Assume that the carrying amount of Golden Company division's net assets, including go to be $ 2,600,000. Prepare the journal entry to record the impairment loss (If any) on De For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac), DO DOLL 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 of Golden Company of Golden Company Golden Company division's net assets, including goodwill is $2,700,000 The recoverable amount of the division is estimated I entry to record the impairment loss (If any) on December 31, 2019 Mac) OLL

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