Acquisition, Cost Allocation, and Derecognition Goodwill and Bargain Purchase Computations The trial balance for the Dark Horse Company follows: Description Cash Debit Credit 30,000 Inventory 100,000 Property, plant, and equipment - Net 370,000 Current liabilities $ 50,000 Common stock-No par 150,000 Retained earnings 300,000 Totals 500,000 $ 500,000 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: Purchase price $ 650,000 (Requirement 1 assumption) Purchase price $ 250,000 (Requirement 2 assumption) Fair market value of the inventory $ 180,000 The plant assets were undervalued by $ 50,000 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. Requirements 1 2 Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. Determine the amount of goodwill or bargain purchase gain. a. Use a minus sign or parentheses for bargain purchase gain, if any. b. Use cell references from prior calculations, if applicable. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. Navigate back to the activity window-screen where you downloaded the initial spreadsheet a. b. Click Choose button under step 3; locate the file you just saved and click Open c. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in MyAccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Summary 4 Within Score Summary window, click on Download (upper right) to download the spreadsheet with feedback