Question 2 (14 points) 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 Calculate the Difference (Excess) Calculate the goodwill (bargain purchase gain) Prepare the purchase price allocation and amortization schedule (Click here to download excel file) , complete it, save it on your computer, and upload your response in the dropbox below)

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Question 2 (14 points): 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

Question 2 (14 points):

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:

Calculate the Difference (Excess)
Calculate the goodwill/(bargain purchase gain)
Prepare the purchase price allocation and amortization schedule.(Click here to download excel file), complete it, save it on your computer, and upload your response in the dropbox below)