Asset acquisition vs. stock acquisition (fair value is different from book value) stock had a traded market value of $30 per share. \begin{tabular}{|l|r|r|r|r|} \hline & \multicolumn{3}{c}{ Book Values } & \multicolumn{2}{c|}{ Fair Values } \\ & Investor & Investee & Investor & Investee \\ \hline Receivables \& inventories & $70,000 & $35,000 & $63,000 & $31,500 \\ \hline Land & 140,000 & 70,000 & 210,000 & 105,000 \\ \hline Property \& equipment & 157,500 & 70,000 & 175,000 & 91,000 \\ \hline Trademarks \& patents & & & 105,000 & 56,000 \\ \hline Total assets & $367,500 & $175,000 & $553,000 & $283,500 \\ \hline Liabilities & $105,000 & $56,000 & $126,000 & $66,500 \\ \hline Common stock ( $1 par) & 14,000 & 7,000 & & \\ \hline Additional paid-in capital & 196,000 & 105,000 & & \\ \hline Retained earnings & 52,500 & 7,000 & & \\ \hline Total liabilities \& equity & $367,500 & $175,000 & & \\ \hline Net assets & $262,500 & $119,000 & $427,000 & $217,000 \\ \hline \hline \end{tabular}