Exercise 3
Dotterel Corporation paid $200,000 cash for 40% of the voting common stock of Swamp Land Inc. on January 1, 2005. Book value and fair value information for Swamp on this date is as follows:
	Assets		Book Values		Fair Values
	Cash		$ 60,000		$ 60,000
	Accounts receivable		120,000		120,000
	Inventories		80,000		100,000
	Equipment		340,000		400,000
			$ 600,000		$ 680,000
	Liabilities & Equities
	Accounts payable		$ 200,000		$ 200,000
	Note payable		120,000		100,000
	Capital stock		200,000
	Retained earnings		80,000
			$ 600,000		$ 300,000

Required

Prepare an allocation schedule for Dotterels investment in Swamp Land.