The balance sheets of Popper Company and Slopper Corporation at January $2,202$x contain the following $($with credit balances in

parentheses$)$:

On January $2,202$X$,$ Popper Co$.$ purchases all of Slopper's common stock by issuing $500$ shares of $$1$ par value stock $($market price

per share of $$50)$ and both continue to exist as separate legal entities.

At the time of the acquisition, Popper believed that Inventories were undervalued by $$100($Slopper uses FIFO$),$ PPE was overvalued

by $$1,000(10$ yr life remaining$),$ and Long term debt had a fair value of $$2,000(20$ year life$).$

In addition, Slopper has Patents worth $$00(5$ year life$),$ and Brand Names worth $$1,100($with indefinite life$)$ which should be

recognized as separate intangible assets. Assume that Popper and Slopper do no business with one another and that Popper

accounts for its investment in Slopper using the complete equity method.

Q$15$: Calculate the amount of goodwill or gain on bargain purchase for this acquisition. Be sure to tell whether it is goodwill or a

gain. For this part, show your work for partial credit.