How do you calculate the gain on sale of business?

Exercise 1 ( LO2,3,4) Asset versus stock acquisition. Barstow Company is contemplating 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 purchase date is as follows: The following fair values have been obtained for Crown's identifiable assets and liabilities: 1. Record the acquisition of the net assets of Crown Company on Barstow Company's books. 2. Record the sale of the net assets on the books of Crown Company. 3. Record the acquisition of 100% of the common stock of Crown Company on Barstow's books. Crown Company will remain a separate legal entity. (2) Cash Liabilities Accumulated Depreciation-Building Accumulated Depreciation-Equipment 875,000 100,000 200,000 100,000 Current Assets Land Building Equipment Gain on Sale of Business 80,000 70,000 450,000 300,000 375,000