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1:21 < Back Assignment Details 2-Assume that one ot your clients asks for ywr assistance in allocating the cost of a 100% acquisition of a competitor firm. You estimate the fair value Of the net assets on the investee's balance sheet at $3,000,000. However, there is, in addition, an unrecorded trademark valued at S850,OOO. The intangible asset has an indefinite useful lite. Required: a. What amount Of goodwill Will be recorded? b. What Will be the effect Ot the goodwill and brand name on the annual income statement? c. Now assume that the agreement between the investor and calls for an additional of $500,000 contingent upon the investee reaching a certain level Of income within three years. You estimate the fair value Of the potential payment at S40QOOO. What effect, if any, does the potential payment have on the amount of goodwill recognized? 3-0n July 1, 2019, Captain Company paid S300Q000 for all Of the common stock Of Bright Sunshine, Inc. Bright Sunshine's identifiable net assets had a fair value Of $2,850,000 at that date. After acquisition, Bri$t Sunshine was identified as a reporting unit the goodwill from the acquisition was assigned to that reporting unit. quired; Compute the amount of if any. from the cquisition. _ Over the remainder of the year, the new unit Submit Assignment revious 0