Pallos Company is purchasing the net assets of Shrilly Company. The book and fair values of Shrilly’s accounts are as follows:
|
Accounts |
Book |
Fair |
|
Current assets |
$100,000 |
$120,000 |
|
Land |
50,000 |
80,000 |
|
Building and equipment |
300,000 |
400,000 |
|
Customer list |
0 |
20,000 |
|
Liabilities |
100,000 |
100,000 |
What values will be assigned to current assets, land, buildings and equipment, the customer list, liabilities, goodwill, and extraordinary gain under each of the following purchase price scenarios?
a. $800,000
b. $450,000
c. $15,000