1. Big Company acquired the following assets and liabilities of Little Company (fair values listed below) for $470,000 cash.

Inventory	$70,000
Land	100,000
Buildings and Equipment	320,000
Current Liabilities	50,000

Assuming these items are all recorded at their acquisition date fair values, what additional item needs to be recorded and how will it be accounted for in the future?

$30,000 Goodwill, capitalized and tested for impairment

$30,000 Bargain purchase, recognized in current earnings

$30,000 Bargain purchase, capitalized and recognized over time

$30,000 Goodwill, capitalized and amortized over time

2. For all acquired contingencies, the acquirer should do all of the following except:

Provide documentation from the acquirer's attorney regarding pending lawsuits and loan guarantees

Provide a description of each contingency

Disclose the amount recognized at the acquisition date

Describe the estimated range of possible undiscounted outcomes of the contingency