During 20X4, the Pencil Corp. entered into negotiations to buy Stilo Company, finally agreeing on a final cash purchase price of $534,000. Pencil will acquire all assets and liabilities of Stilo effective 31 December 20x4, except for the existing cash balances of Stilo. The 31 December 20X4 balance sheet prepared by Stilo is shown below in column (a), and the revised fair values added later by Pencil are shown in column (b). STILO COMPANY BALANCE SHEET At 31 December 20X4 Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Land Franchise (unamortized balance) (a) Book Values of Stilo Co.(b) Fair Values assigned by Pencil Corp. 50,000 106,000 320,000 618,000 22,000 38,000 4.0 n/a 108,000 180,000 570,000 80,000 42,000 Total Liabilities and shareholders' equity