Problem $2$

Tyco decided to sell one of its subsidiaries, Right Controls. Johnson Brothers, is the purchaser of this subsidiary. Johnson Brothers paid $$2,000,000$ for Right Controls. Johnson Brothers performed a valuation analysis of Right Controls assets acquired and liabilities. The following table presents book values from Right Controls financial statements and fair values determined by Johnson Brothers:

$\backslash$table$[[$Description$,$Book Value,Fair Value$],[$Inventory$,420,000,$$$450,000$