E4-14 Acquisition with Differential. Road Corporation acquired all of Conger Corporations voting shares on January 1, 20X2, for $470,000. At that time Conger reported common stock outstanding of $80,000 and retained earnings of $130,000. The book values of Congers assets and liabilities approximated fair values, except for land, which had a book value of $80,000 and a fair value of $100,000, and buildings, which had a book value of $220,000 and a fair value of $400,000. Land and buildings are the only noncurrent assets that Conger holds. Required. a. Compute the amount of goodwill at the date of acquisition

(a) FMV of consideration paid = 470

BV of net identifiable assets = 80 + 130 = 210

Fair value excess = 100-80 (from land) + 400 - 220 (from bldg) = 200

Goodwill = 470 - 210 - 200 = 60

Can you explain how and why common stock and retained earnings are considered net identifable assets? im confused.