Blackfish Company purchases 100% of Tautog Company on Jan 1, 2018 for $1,200,000 in cash. On the day of the purchase, Tautog had the following net assets:

Book ValueFair ValueLife

Cash, received$100,000$100,000

Equipment375,000450,0003 years

Land200,000150,000

Building (net)500,000580,0005 years

Payable$300,000$200,0001 year

Blackfish Net Assets$875,0001,080,000

A.Make a schedule showing how to allocate the difference in fair value given up by Blackfish and what is received from Tautog

B.Determine the amount of excess amortization for 2018.

C. Assume that the purchase was a merger. Record the purchase on the books of Blackfish