Acquisition Company of America, Inc. (ACAI) acquires 7,500 shares of the outstanding stock of Target Co. as of December 31, 2019. The audited financial statements of Target Co. are set forth below. In connection with the purchase price ACAI issued 50,000 shares of it own stock with a market price per share of $400 per share and paid the selling shareholders $40,000,000 in cash. The balance sheet of Target Co is as follows: Target Co. Balance Sheet 12/31/2019 $ Assets Current assets: Cash Accounts Receivable Inventory Prepaid assets Total current assets 2,000,000 10,000,000 8,500,000 1,500,000 22,000,000 Poperty Plant & Euipment, net Identifiable intangibale assets Goodwill Total assets 32,000,000 12,000,000 6,000,000 72,000,000.00 $ $ Liablities and Shareholder's Equity Current lloblities: Accounts Payable Accrued Liabilities Notes Payable Total current liablities 5,000,000 2.000.000 10,000,000 17,000,000 Long Term Debt Total Liablities 25,000,000 42,000,000 Shareholder's Equity Common Stock (10,000 shares issued and oustanding) Additional Paid in Capital Retained Earnings Total Shareholders Equity Total Liablities and Shareholdeer's Equity 10,000,000 15,000,000 5,000,000 30,000,000 72,000,000 $ Income Taxes Business Combination Bonuse Pro Additional information with respect to the acquisition: -Unless otherwise indicated the carrying value of current assets and liabilities is expected to approximate their fair value Target Co. uses the Lifo method of accounting. At December 31, 2019 Target Co has Llifo reserves of $2,500,000 The note payable is due on demand and has a interest rate based on the prime rate, plus 2% to take into account the credit risk of Target Co ACAI had third party valuations performed for fixed assets and intangible assets. The fair value of those assets was $40,00,000 and $20,000,000, respectively The Long-Term Debt is due in 3 three years and has a face rate of 5%. The current rate for similar debt is 6% Prepare the purchase price allocation that ACAl would do for the acquisition of Target Co