Exercise1(LO2,3,4)Assetversusstockacquisition. BarstowCompanyiscontemplat- ing the acquisition of the net assets of Crown Company for $875,000 cash. To complete the transaction, acquisition costs are $15,000. The balance sheet of Crown Company on the pur- chase date is as follows: Crown Company Balance Sheet December 31, 2015 Assets Currentassets ..................... Land............................. Building.......................... Accumulated depreciationbuilding . . . Equipment........................ Accumulated depreciationequipment . Totalassets...................... Liabilities and Equity $ 80,000 70,000 450,000 (200,000) 300,000 (100,000) $ 600,000 Liabilities ................ Commonstock($10par).... 100,000 Paid-incapitalinexcessofpar 150,000 Retained earnings . . . . . . . . . 250,000 Totalliabilitiesandequity . $600,000 The following fair values have been obtained for Crown's identifiable assets and liabilities: Currentassets .................................. Land.......................................... Building....................................... Equipment..................................... Liabilities ...................................... $ 85,000 90,000 300,000 275,000 102,000 $100,000 1. RecordtheacquisitionofthenetassetsofCrownCompanyonBarstowCompany'sbook