Holly Corporation purchased a 45% interest in the common stock of Ivy Company for $3,500,000 on January 1, 2018, when the book value of Ivy's net stockholder's equity was $7,000,000. Ivy's book values equaled their fair values except for the following items:

BookFair

ValueValueDifference

Inventories$450,000$600,000$ 150,000

Land100,000450,000350,000

Building-net400,000200,000(200,000)

Equipment-net350,000400,00050,000

Required:

Calculate the FMV of the assets at the time of purchase and goodwill, then make a schedule to allocate any excess purchase cost to identifiable assets and goodwill.