During 2021, Oriole Company purchased the net assets of Pharoah Corporation for $2186800. On the date of the transaction. Pharoah had $596400 of liabilities. The fair value of Pharoah's assets when acquired were as follows: Current assets $1073520 Noncurrent assets 2504880 $3578400 How should the $795200 difference between the fair value of the net assets acquired ($2982000) and the cost (52186800) be accounted for by Oriole? The current assets should be recorded at $1073520 and the noncurrent assets should be recorded at $1709680 A deferred credit of $795 200 should be set up and then amortized to income over a period not to exceed forty years. The 5795200 difference should be recognized as a gain. The $795200 difference should be credited to retained earnings Blossom Company purchases Crane Company for $4900000 cash on January 1.2021. The book value of Crane Company's net assets reported on its December 31, 2020 financial statement was $3500000. An analysis indicated that the fair value of Crane's tangible assets exceeded the book value by $580000, and the fair value of identifiable intangible assets exceeded book value by $310000. Determine the fair value of identifiable net assets used to record goodwill. $4390000. $4080000 $3500000 $270000 Pharoah Manufacturing Company acquired a patent on a c turing process on January 1, 2020 for $4600000. It was expected to have a 10 year life and no residual value. Pharoah uses straight-line amortization for patients On December 31, 2021, the future cash flows expected from the patent were $320000 per year for the next eight years. The present value of these cash flows, discounted at Pharoah's market interest rate, is 54000000. At what amount should the patent be carried on the December 31, 2021 balance sheet? 53630000 $4000000 $4600000 $2560000 Pharoah Manufacturing Company acquired patent on a manufacturing process on nuary 1 2020 for $4600000. It was expected to have a 10 yearfe and ng residual value. Pharoah uses straight-line amortization for patents. On December 31, 2021. the future cash flows expected from the patent were $320000 per year for the next eight years. The present value of these cash flows, discounted at Pharoah's market interest rate, is 54000000. At what amount should the patent be carried on the December 31, 2021 balance sheet? $3600000 $4000000 $4600000 52580000