On June 31. 2019. Majestic Co acquired all of the common stock of Golden Company, which became a division of Majestic Co

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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 1 (24.3 KiB) Viewed 106 times

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 time of the acquisition Golden Company Statement of Financial Position Aucts Equity and liabilities Plantats (not) SI 250,000 Share capital-ordinary $1,045,000 Inventory 370.000 Retained ning 1,000,000 Receivables 750,000 Accounts payable 625.000 Cash 350.000 Total assets 92.720.000 Total equity and liabilities $2.720.000 An apprunal indicated that the fair value of the inventory was $375,000 and the fair value of the plant asset was $1,450,000. The agreed purchase price was 53,000,000, and this laount was paid in cash to the previous owners of Golden Company Required: a. Prepare the entry to record the purchase of Golden Company . Assume that the carrying amount of Golden Company division's net assets, including goodwill is $2,800 000 The recoverable amount of the division is estimated to be $3.200,000. Prepare the journal entry to record the impairment loss (if any) on December 31, 2019