On December 31, 2013, Bravo Co. paid $$20,000 to acquire the whole business of Rukab's Ice Cream Co., which became a division of Bravo. Rukab reported the following balance sheet at the time of the acquisition, and in the last column the related FMV amounts to each account. Assets Cost $100,000 FMV $100,000 Cash Receivables 60,000 60,000 Merchandise Inventory 80,000 100,000 Land 100,000 250,000 Equipment (net) 70,000 30,000 Patent 25,000 Total Assets $410.000 $65,000 Liabilities & S.H.E Cost FMV Payables 50,000 50,000 Mortgage payable 90,000 70,000 100,000 110,000 Bonds payable Common Stock 70,000 ROORO Retained Earnings Total Liabilities & S.H.E 100.000 410,000 nei 235 nob Soodwill 185,00 Over the first year of operations, the newly purchased division experienced operating insses. In addition, it now appears that it will generate substantial losses for the foreseeable future. Presented below is net assets information related to Rukab Division of Bravo Co. on December 31,2014. fu 2015 је Rukat Division Net Assets December 31, 2014 Cash Receivables $50,000 So 000 40,000 30000 60,000 Co 250,000 30000 Merchandise Inventory Land- Equipment (net) 25,000 28000 20,000 22030 Patent 120 Goodwill Payables (40000) Mortgage payables 1600. Bonds payable 25 (40,000) (135,000) 8000) ape (155,000) 172002 n 12p00 300,000 1 it is determined that the fair value of Rukab Division is $250,000. The recorded amounts for Bravo's net assets (excluding goodwill) is the same as fair value, except for land which has a fair RS p value of $50,000 above carrying value, equipment which has a fair value of $5,000 below carrying value, receivables which has a fair value of $10,000 below carrying value, mortgage payable, which has a fair value of $25,000 above carrying value and bonds payable which has a fair value of $15,000 above carrying value. Required a) Compute the amount of goodwill for Bravo Corporation on the purchase of Rukab's Ice Cream Company (if any) on December 31, 2013. (6 points) b) Prepare the journal entry (if any) to record impairment of goodwill at December 31, 2014. (8points) Test 1 het identiiugly Asset on Dec 21, 2014 = 300.000 relentlingly c) At December 31, 2015, it is estimated that the division's fair value increased to $100,000. Prepare the journal (if any) to record this increase in fair value.