Finance Problem

17. Wright Aerospace is considering the acquisition of Columbus Shipping Corporation. The book value of the Columbus Shipping Corporation is $30 million, and Wright Aerospace is willing to pay $90 million in cash and preferred stock. No upward adjustment of asset values is anticipated. Wright Aerospace Corporation has 2 million shares outstanding. A purchase of assets financial treatment will be used. a. How much will the annual amortization be? b. Is any tax benefit involved? c. Explain how the recording of goodwill could have been avoided