Long-Term Operating Assets: Acquisition, Cost Allocation, and Derecognition :1 Goodwill and Bargain Purchase Computations The trial balance for the Dark Horse Company follows: Description Debit Credit Cash 5 30,000 Inventory 100,000 Property, plant, and equipment - Net 370,000 Current liabilities 5 50,000 Common stock No par 150,000 Retained earnings 300,000 Tota Is 5 500,000 5 500,000 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: Purchase price 5 650,000 {Requirement 1 assumption} Current liabilities $ 50,000 Common stock No par 150,000 Retained earnings 300,000 Totals 5 500,000 $ 500,000 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: Purchase price 5 650,000 (Requirement 1 assumption) Purchase price 5 250,000 (Requirement 2 assumption) Fair market value ofthe inventory S 180,000 The plant assets were undervalued by $ 50,000 Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong. l 1. Calculate the amount of goodwill or bargain purchase gain to be recorded on the acquisition. (Always use cell references and formulas where appropriate to receive full credit. lfyou copy/paste from the Instructions tab you will be marked wrong.) Fairvalue of net assets Goodwill {bargain purchase gain) 2. Assume now that MPL, Inc. offers to acquire Dark Horse at the purchase price identified in the data table. Determine the amount of goodwill or bargain purchase gain. (Always use cell references and formulas where appropriate to receive full credit. Ifyou copyfpaste from the Instructions tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Goodwill {bargain purchase gain)