Bargain Purchase Beta Corp's net assets have fair values as described below:

	Fair Value
Current assets	$300,000
Land	$900,000
Buildings and equipment	$1,100,000
Loans payable	$(350,000)

Gamma Corporation pays $3,400,000 for Beta Corp and records the acquisition as a merger. Gamma Corporation determines that identifiable intangibles valued at $1,500,000, not previously reported on Beta’s books, are also recognized as acquired assets.

Required: a. Prepare a schedule to calculate the gain on acquisition. b. Prepare Gamma’s journal entry to record the merger. c. Now assume Gamma determines that Beta Corp has unreported contingent liabilities, reportable at the date of acquisition following GAAP, with a fair value of $75,000. Recalculate the gain on acquisition.