Arizona Corp. had the following account balances at 12/1/19:

• Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000.

Several of Arizona's accounts have fair values that differ from book value. The fair values are:

• Land $480,000; Building $720,000; Inventory $336,000; and Liabilities $396,000.

Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000.

Arizona Corp. Fill in the amount below.

(Replace the ? Below with your answer)

Inglewood Fair Value Allocation Schedule

December 1, 2019

Payment by Inglewood ($66 fair value x 20,000 sh) 1320000

Book value of Arizona Corp. (assets - liabilities) 1176000

Excess of fair value over book value 144000

Allocation to specific accounts between fair value and book value:

Inventory (undervalued) 96000

Land (overvalued) -240000

Building (undervalued) 120000

Liabilities 84000

Goodwill 84000

1. Imagine you are the decision maker at Inglewood Inc. Determine in whether you would encourage acquiring Arizona Corp? Be sure to include your rationale.