Paper purchased 12,000 of Sand's 30,000 shares on 10/1/20X0 for $36,000. At 1/1/20X0, Sand had Common Stock of $30,000 and Retained Earnings of $50,000. During the 12 months ended 12/31/20X0, Sand earned income of $100,000.Annual dividends of $1 per share were authorized by the Board of Directors to be paid in equal amounts at the end of each quarter. The book values and fair values of Sand's assets and liabilities on 10/1/20X0 were as follows: (Note partial year acquisition)

Assets:

Sand Book Values

Sand Fair Values

Cash

$20,000

$20,000

Receivables

30,000

30,000

Inventory(sold in November 20X0)

25,000

40,000

Land

27,500

40,000

Building(10 year Life)

120,000

60,000

Equipment(5 year Life)

40,000

40,000

Patents(5 year life)

0

60,000

Total Assets

$262,500

$290,000

Liabilities:

Accounts Payable

$80,000

$80,000

Notes Payable(Matures on 10/1/20X4)

50,000

70,000

Required:

1. Calculate the Difference (Excess)
2. Calculate the goodwill/(bargain purchase gain)
3. Prepare the purchase price allocation and amortization schedule, complete it, save it on your computer, and upload your response in the dropbox below)

Purchase Price Allocation and Amortization ScheduleAccount10/1/20X0 100% Unamortized Difference10/1/20X0 Difference to AssignBPG Adjustment (if needed)20X0 Amortization12/31/20X0 Unamortized Difference