Question #4 West Coast Limited (WCL) purchased all of the shares of East Coast Limited (ECL) as part of its expansion strategy. WCL paid $8,750,000 fort the shares. The fair market value of ECL's net identifiable assets (assets less liabilities) at the date of the purchase was $8,250,000. Required: What situation arose as a result of this transaction and how will it be handled and reported in the financial statements by WCL