Panther Company is acquiring the net assets of Sharon Company. The book and fair values of Sharon’s accounts are as follows: Accounts Book FairCurrent Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $120,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 80,000Building and Equipment . . . . . . . . . . . . . . . . . . . . . . . 300,000 400,000Customer List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 20,000Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100,000 100,000What values will be assigned to current assets, land, building and equipment, the customer list, liabilities, goodwill, and gain under each of the following acquisition price scenarios?a. $800,000b. $450,000

Panther Company is acquiring the net assets of Sharon Company. The book and fair values of Sharon’s accounts are as follows: Accounts Book FairCurrent Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000 $120,000Land. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 80,000Building and Equipment . . . . . . . . . . . . . . . . . . . . . . . 300,000 400,000Customer List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 20,000Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .100,000 100,000What values will be assigned to current assets, land, building and equipment, the customer list, liabilities, goodwill, and gain under each of the following acquisition price scenarios?a. $800,000b. $450,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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