Niall Company acquired all of Ed Sheeran Corporation's assets and liabilities on June 30, 2021. Ed Sheeran reported assets with a book value of $1,000,000 and liabilities of $550,000. Niall noted that Ed Sheeran included the amount $70,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Niall also determined that an old machine previously used by Ed Sheeran had a fair value of $150,000 but had not been recorded by Ed Sheeran. Except for machinery and equipment, all the other assets and liabilities of Ed Sheeran approximated their fair values. In recording the transfer of assets and liabilities in its books, Niall recorded a gain of $150,000 and paid $340,000 to acquire Ed Sheeran's net assets. If the book value of Ed Sheeran's machinery and equipment was $360,000, what was their fair value?
Niall Company acquired all of Ed Sheeran Corporation's assets and liabilities on June 30, 2021. Ed Sheeran reported assets with a book value of $1,000,000 and liabilities of $550,000. Niall noted that Ed Sheeran included the amount $70,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Niall also determined that an old machine previously used by Ed Sheeran had a fair value of $150,000 but had not been recorded by Ed Sheeran. Except for machinery and equipment, all the other assets and liabilities of Ed Sheeran approximated their fair values. In recording the transfer of assets and liabilities in its books, Niall recorded a gain of $150,000 and paid $340,000 to acquire Ed Sheeran's net assets. If the book value of Ed Sheeran's machinery and equipment was $360,000, what was their fair value?
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