River Limited is involved in the acquisition of Promise Limited and the following information is available: :

* River Limited pays tax at the rate of 40%;

* the cost of acquiring Promise Limited was €500,000;

* the fair value of Promise Limited’s net assets acquired is €750,000;

* the tax base of the assets acquired is €600,000;

* the fair value and the tax base of the liabilities acquired is €250,000; and

* the difference between the tax and fair values of the assets acquired is €150,000, which is made up of taxable temporary differences of €200,000 and deductible temporary differences of €50,000. The directors are confident that the deductible temporary differences are recoverable.

Requirement Show how the purchase price will be allocated.