mp sum purchase or sales price among various assets purchased or sold. Form $8594$ is a reporting

device that is filed by both the buyer and the seller. The way the allocation is done is spelled out in the

regulations to Section $338($the two sections share use of the $$residual$$ method of allocation$).$

YOU MUST COMPLETE THE ACTUAL FORM $8594.$ THIS MEANS YOU SUBMIT THE IRS FORM AND NOT

SOME SELF$-$CREATED EQUIVALENT DOCUMENT.

FACTS

Target Corporation$$s assets are acquired by Acquiring Corporation in exchange for $$13,000,000$ of cash

to be paid to Target Corporation. The purchase agreement is dated November $24,2023.$

Target Corporation$$s EIN is $23-372698674.$ Target Corporation$$s address is $3245$ Industrial Blvd$.,$

McKinney, TX $75070.$ YOU REPRESENT TARGET $($THE SELLER$)$ AND WILL REPORT THE FORM ON BEHALF

OF THE SELLER.

Acquiring Corporation$$s EIN is $23-900653890.$ Acquiring Corporation$$s address is $9200$ Bretton Lakes

Rd$.,$ Nashville, TN$,37209.$

The contract lists the following assets and values assigned by the parties. The parties have agreed that

they will follow the purchase price allocation as stated in the contract.

Asset Assigned FMV

Cash $750,000$

Inventory $2,700,000$

Accounts

Receivable

$1,100,000$

Workforce in Place $400,000$

Customer Lists $875,000$

Equipment $2,500,000$

Furnishings $480,000$

Land $420,000$

Building $2,800,000$

In addition to the $$13,000,000$ paid to Target Corporation, Acquiring has also agreed to pay $$1,000,000$

of goodwill to Jack Sparrow, the President of Target. The agreement between the parties specifies that

this is for Sparrow$$s personal goodwill.