There is one research case in this assignment. You must submit your solution directly on D2L by 9:00 a.m. Wednesday, April 19, 2023. You must submit your response by following the link to Research and Exams in the navigation bar. Once you select Research and Exams you will be able to select "Research Assignment \#3". Remember the following sections will not provide directly on point guidance: - Section 00: Status - Section 05: Overview and Summary - Section 10: Objective - Section 15: Scope and Scope Exceptions - Section 20: Glossary - Section 55: Implementation Guidance and Illustrations: Any answers that use these sections as the directly on point guidance will be incorrect and will earn "0" points for the Guidance. Research Case: Private Storage is a private company with a March 31" fiscal year end. Private Storage has 6 locations in northern Illinois. Private Storage has a strategic plan which focuses on growing the company through acquiring other storage companies. The management of Private Storage became aware of another privately held storage company "Local Storage" whose owners wished to sell the business in order to retire. The management of Private Storage and the owners of Local Storage reached an agreement for Private Storage to acquire Local Storage for $200,000 cash. They also agreed to have valuation experts determine the fair value of all of Local Storage's assets and liabilities. At 9:00 a.m. March 31, 2023, Private Storage acquired the assets and liabilities of Local Storage for a purchase price of $200,000. On March 31,2023 , the valuation experts determined that the fair value of the identifiable assets and liabilities of Local Storage was $280,000. The final item the controller of Private Storage needs to do to complete the financial statements for the year ending 3/31/23 is to record the acquisition of Local Storage. Prior to the acquisition of Local Storage on March 31", 2023, Private Storage had total net assets of $3,000,000 including Goodwill of $400,000 and net income of $650,000. After the acquisition was concluded on March 31"2, the controller of Private Storage recorded all the assets and liabilities of Local Storage at their fair values and recorded a credit to Goodwill for $80,000. After the entries to record the acquisition of Local Storage the ending balance for Goodwill was $320,000. Assume you are the auditor who is verifying the accounting for the consolidation including goodwill. You have verified that the assets and liabilities were recognized correctly. However. you are not sure if goodwill was recognized correctly and if the ending balance for Goodwill is correct. Accounting Issue: What is the correct ending balance of Goodwill correct? Codification Reference: Interpretation of the Guidance: Application of Guidance: The correct 3/31/23 ending balance of Goodwill is: a. $320,000 b. $400,000 c. $480,000 d. $680,000 There is one research case in this assignment. You must submit your solution directly on D2L by 9:00 a.m. Wednesday, April 19, 2023. You must submit your response by following the link to Research and Exams in the navigation bar. Once you select Research and Exams you will be able to select "Research Assignment \#3". Remember the following sections will not provide directly on point guidance: - Section 00: Status - Section 05: Overview and Summary - Section 10: Objective - Section 15: Scope and Scope Exceptions - Section 20: Glossary - Section 55: Implementation Guidance and Illustrations: Any answers that use these sections as the directly on point guidance will be incorrect and will earn "0" points for the Guidance. Research Case: Private Storage is a private company with a March 31" fiscal year end. Private Storage has 6 locations in northern Illinois. Private Storage has a strategic plan which focuses on growing the company through acquiring other storage companies. The management of Private Storage became aware of another privately held storage company "Local Storage" whose owners wished to sell the business in order to retire. The management of Private Storage and the owners of Local Storage reached an agreement for Private Storage to acquire Local Storage for $200,000 cash. They also agreed to have valuation experts determine the fair value of all of Local Storage's assets and liabilities. At 9:00 a.m. March 31, 2023, Private Storage acquired the assets and liabilities of Local Storage for a purchase price of $200,000. On March 31,2023 , the valuation experts determined that the fair value of the identifiable assets and liabilities of Local Storage was $280,000. The final item the controller of Private Storage needs to do to complete the financial statements for the year ending 3/31/23 is to record the acquisition of Local Storage. Prior to the acquisition of Local Storage on March 31", 2023, Private Storage had total net assets of $3,000,000 including Goodwill of $400,000 and net income of $650,000. After the acquisition was concluded on March 31"2, the controller of Private Storage recorded all the assets and liabilities of Local Storage at their fair values and recorded a credit to Goodwill for $80,000. After the entries to record the acquisition of Local Storage the ending balance for Goodwill was $320,000. Assume you are the auditor who is verifying the accounting for the consolidation including goodwill. You have verified that the assets and liabilities were recognized correctly. However. you are not sure if goodwill was recognized correctly and if the ending balance for Goodwill is correct. Accounting Issue: What is the correct ending balance of Goodwill correct? Codification Reference: Interpretation of the Guidance: Application of Guidance: The correct 3/31/23 ending balance of Goodwill is: a. $320,000 b. $400,000 c. $480,000 d. $680,000