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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 tine of the

acquisition:

Assets

(Plant assets (net)

Inventory

Receivables

Cash

Total assets

Golden Company

Statement of Financial Position

Eanity and Linbilities

$1.050,000

375,000

6$0.000

250.000

$7.375,000

Share capital-ordinary

Retained earines

Accounts payable

5950.000

900.000

475,000

Total equity and liabilitie

$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.

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 $ 2,800,000

Prepare the journal entry to record the impairment loss (If any) on December 31, 2019.

OP 2018 Maj Coed all of the commock of Compach becamadition of the flow Golden Sofia Panel tave Roches Cach Total 950.000 SOO 000 STOSO000 375.000 30 000 2000 000 Share capital den Ace Totally and The 2425 All appealisticated that the fait value of the retary w $185.000 and the fair value of the plant wa s10.00 The pred practise price $2.500.000, od this went was part in the sowen of Golden Company Required: Prepare the entry and the use of Copy Assume that the carrying amount of Golden Company division's including poodwill $2.700,000. The recoverable amount of the division is to be $2.500,000 Prepare the journal entry to record the impairments if any) on December 31, 2010 For the the ALT 10 PIALNI B 1 V5 A E ATX X, 321 1

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