Target Corporations assets are acquired by Acquiring Corporation in exchange for $3,200,000 of cash to be paid to Target Corporation. The parties have agreed that they will use the following assets purchase price allocation as stated in the contract.

Asset	Assigned FMV
Cash	65,000
Inventory	280,000
Accounts Receivable	55,000
Workforce in Place	200,000
Customer Lists	160,000
Copyrights	40,000
Equipment	500,000
Furnishings	80,000
Land	90,000
Building	800,000

Use IRS Form 8594 table format (below) to allocate the prices. The way the allocation is done is spelled out in IRS regulations Section 338 (the two sections share use of the residual method of allocation). The purpose of this section is to prescribe an approach to allocate a lump sum purchase or sales price among various assets purchased or sold.

Asset	Asset Class (1-6)	Allocation of sales price
Cash	Class I / II / III/ IV / V / VI ?
Inventory	Class I / II / III/ IV / V / VI ?
Accounts Receivable	Class I / II / III/ IV / V / VI ?
Workforce in Place	Class I / II / III/ IV / V / VI ?
Customer Lists	Class I / II / III/ IV / V / VI ?
Copyrights	Class I / II / III/ IV / V / VI ?
Equipment	Class I / II / III/ IV / V / VI ?
Furnishings	Class I / II / III/ IV / V / VI ?
Land	Class I / II / III/ IV / V / VI ?
Building	Class I / II / III/ IV / V / VI ?
Total