Cost Potluck Corp. acquired all of the net assets of Sauers Corp. on June 30, 2013, in

Question:

Cost Potluck Corp. acquired all of the net assets of Sauers Corp. on June 30, 2013, in an acquisition reported as a statutory merger. The fair values of Sauers Corp.'s identifiable net assets at the date of acquisition are as follows:

Tangible assets....................................................................................... $25,000,000

Intangible assets..................................................................................... 90,000,000

Liabilities................................................................................................ 55,000,000

Potluck pays $100 million in cash and issues 1,500,000 shares of stock to the former owners of Sauers. Potluck's stock has a of $1/share. The market price of the shares at the date of acquisition, $40/ share, is used to value the shares issued. Registration fees for the stock are $750,000, and legal and consulting fees connected with the acquisition are $900,000, both paid in cash.
Required
Record the acquisition on June 30, 2013. Intangible Assets
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