Separating Cost into Major Conceptual Elements Pomona Inc. acquired 100% of the outstanding common stock of Sonora Inc., a manufacturing company with extensive manufacturing facilities, at a cost of $2,000,000. Sonora’s net assets have a book value of $1,800,000 and a current value of $2,100,000 as of the acquisition date.

Required Separate the cost of the investment into its major conceptual elements as of the acquisition date.