March Corporation acquired 65 percent of Ember Corporation's ownership on January 2, 2008, for $708,500. At that time, Ember's net assets had a book value of $810,000 and a fair value of $960,000. The difference between the book value and fair value of Ember's net assets all related to depreciable assets. The total fair value of Ember's shares not acquired by March Corporation was $381,500. FASB Statement No. 141R (ASC 805), which was not in effect at the time of Ember's acquisition, requires recognition of 100 percent of the fair value of the assets and liabilities of an acquired company and 100 percent of the implied goodwill, even in less-than-100-percent acquisitions. Because March's top managers are considering additional acquisitions, they are concerned with how to account for those acquisitions under the FASB's current standards.
Required
Analyze how March's consolidated financial statements would have been different if March had acquired Ember after FASB Statement No. 141R (ASC 805) became effective. Prepare a memo to Mr. R. U. Cleer, CFO of March Corporation, explaining how the amounts appearing in the consolidated financial statements relating to Ember would differ between the prior reporting standards and those established by FASB No. 141R (ASC 805). Include in your memo citations to and quotations from the appropriate accounting literature.