solution:

	Amount
Cash paid	$300,000
Long term liabilities	$200,000
Present value of contingent obligation	$23,000
Total consideration	$523,000
Assets
Current assets	$85,000
Equipment	$105,000
Buildings	$180,000
Goodwill	$31,000
Clint Contract	$60,000
Research and development	$90,000
Total Assets acquired	$551,000
Current liabilities	$50,000
Total value of liabilities	$50,000

I just need to fix this/ The subsidiary's existing goodwill is disregarded and goodwill is calculated for the acquisition by comparing the consideration given to the fair value of the other assets and liabilities received.

Porter Company acquired all of Sutter, Inc.'s outstanding shares on January 1. Porter paid $300,000 and issued $200,000 in long-term liabilities and paid $30,000 in legal fees. Porter also agreed to pay $80,000 to the former owners of Sutter contingent on meeting certain revenue goals during the following year. Porter estimated the present value of its probability adjusted expected payment for the contingency or contingent obligation at $23,000 Precombination book values for Sutter, Inc. are as follows: Current assets Equipment Buildings Goodwill Total $ 85,000 90,000 175,000 31,000 $ 381,000 Current liabilities Common stock Retained earnings Revenues Expenses Total $ (50,000) (180,000) (115,000) (136,000) 100,000 $(381,000) Porter's appraisal of Sutter found two balance sheet accounts that differed from fair value. Equipment was undervalued by $15,000 and Buildings by $5,000. Porter noted that Sutter has unrecorded client contracts worth $60,000 and research and development activity in process with an appraised fair value of $90,000 a. What is the total consideration given by Porter? (Show your calculations.) b. What values for each of the acquired assets and liabilities will be used in the consolidation