Asset acquisition (fair value equals book value) Assume on January 1, 2022, the investor company issued 10,000 new shares of the investor company's common stock in exchange for all of the individually identifiable assets and liabilities of the investee company. The investee company qualifies as a business. Fair value approximates book value for all of the investee's identifiable net assets. The transaction resulted in no goodwill or bargain purchase gain. The following financial statement information is for an investor company and an investee company on January 1, 2022, prepared immediately before this transaction. Book Values Investor Investee Receivables & inventories $112,000 $56,000 112,000 224,000 252,000 112,000 $588,000 $280,000 $168,000 $84,000 22,400 - 11,200 308,000 135,800 89,600 49,000 $588,000 $280,000 $420,000 $196,000 Land Property & equipment Total assets Liabilities Common stock ($1 par) Additional paid-in capital Retained earnings Total liabilities & equity Net Assets

Asset acquisition (fair value equals book value) idencifiable assets and liabihties of the imvestee company The investes company gualfies as a buvness. Fair value approximates book value for all of the investees and an investee cotnpuny on jasuary 1,2022 , prepsred immediantly before this transaction