Gill Corporation had the following account balances at 12/1/17:

Receivables	$ 96,000
Inventory	240,000
Land	720,000
Building	600,000
Liabilities	480,000
Common Stock	120,000
Additional Paid-In Capital	120,000
Retained Earnings, 12/1/16	840,000
Revenues	360,000
Expenses	264,000

Several of Gill's accounts have fair values that differ from book value. The fair values are: Land $500,000; Building $700,000; Inventory $330,000; and Liabilities $400,000. Graves Inc. acquired all of the outstanding common shares of Gill by issuing 20,000 shares of common stock having a $6 par value, but a $65 fair value. Stock issuance costs amounted to $12,000. Direct combination costs amounted to $15,000. Graves also agreed to pay $30,000 to the former owners of Gill contingent on meeting certain revenue goals during the following year. Graves estimated the present value of its probability adjustment expected payment for the contingency at $18,000.

Required: A. Prepare a fair value allocation and goodwill schedule at the date of the acquisition.

B. Assume dissolution of the subsidiary has occurred. Record the journal entries to merge the subsidiary records with the parent company.

C.What would be the amount of goodwill and the acquisition entries if the purchase method is used to record the merger? Show your work.