Constructing the Consolidated Balance Sheet at Acquisition Easton Company acquires 100 percent of the outstanding voting shares of Harris Company on January 1,2016. To obtain these shares, Easton pays $420,000 in cash and issues 5,000 of its $10 par value common stock. On this date, Easton's stock has a fair value of $72 per share, and Harris's book value of stockholders' equity is $560,000. Easton is willing to pay $780,000 for a company with a book value for equity of $560,000 because it believes that (1) Harris buildings are undervalued by $80,000, and (2) Harris has an unrecorded patent that Easton values at $60,000. Easton considers the remaining balance sheet items to be fairly valued (no book-to-fair value difference). The remaining $80,000 of the purchase price excess over book value is ascribed to corporate synergies and other general unidentifiable intangible assets (goodwill). The January 1,2016, balance sheets at the acquisition date follow:

Constructing the Consolidated Balance Sheet at Acquisition ascribed to corporate synergies and other general unidentifiable intangible assets (goodwill). The january 1,2016, balance sheets at the acquisition date follow: Do not use negative signs with your answers. Remember to use negative signs with your consolidating entries, when appropriate. c. How vill the excess of the purchase price over book value acquired be treated in years subsequent to the acquisition? Select the statement that Is false. OGooctwill will be tested for irrpairment but not amorticed. OThe excess assigned to Buildings will be depreciated over their estimated useful lives. OGoodwill will be tested for impairment and amortized ower a fifteen year period. OThe value assigned to the unreccrded Patent will be amortized over its expected useful life