PLEASE MAKE SURE YOU SOLVE IT CORRECTLY

Goodwill Assignment HARCO, a company active in fintech, has just announced the purchase of 100% of Canadian technology firm Bazar Technology by issuing 10 million shares to pay for the transaction. HARCO's closing price before the announcement was $100 per share. Immediately after purchase (but agreed to in advance and as part of the purchase agreement), HARCO will sell back a small outsourcing business, which is a part of Bazar, to the original owners for $50 million. Bazar Technology is a private company developing back office security software for financial institutions. The purchase price includes the following four items: Cost Market Value Assets ** $33,000,000 $43,000,000 Liabilities $13,000,000 $16,000,000 Patents $5,000,000 $75,000,000 to $110,000,000* Trademark $600,000 $2,500,000 * the patents have been appraised by three independent appraisal firms as follows: Texas & Pacific Partners (firm specializing in technology firm and asset appraisals): $75 million. Broy, Bentzen and Bork (small appraisal firm in George West, TX): $110 million. Troy, Della & Partners (general appraisal firm): $90 million. ** does not include patents and trademarks. Additional information: The existing management team at Bazar has a long-term incentive agreement, which requires the owner of the firm (whomever that is) to pay $25 million if Bazar's valuation exceeds $200 million. The amount will be paid by HARCO in two years. The contract details have been footnoted in the financial reports produced by Bazar. Required: a. Calculate the purchase price of Bazar. b. Calculate the amount attributable to goodwill. c. Record the entry to purchase Bazar. d. Assume that in three years, HARCO's stock prices has decreased to $20 per share. The share price drop is considered reasonably permanent as the market for fintech companies is considered mature and as a result, the share prices of fintech firms have return to their long-term equilibrium levels. Based on the information provided, should HARCO consider writing down the investment in Bazar? If so, by much? Ignore time value of money. If you give two separate answers in a through c, please use only one of them when answering d. In answering a through c, make sure you discuss how to handle the sale of the outsourcing business and the deferred long-term compensation contract. Deadline: December 12 by midnight via email. One report