Exercise 12-20 (Essay) On July 1, 2020, Zoe Corporation purchased the net assets of Soorya Company by paying $415,000 cash and issuing a $50,000 note payable to Soorya Company. At July 1, 2020, the statement of financial position of Soorya Company was as follows: Accounts payable Soorya, capital $300,000 239,000 Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) Trademarks (net) Total $75,000 102,000 98,000 50,000 75,000 90,000 49,000 $539,000 Total $539,000 The recorded amounts all approximate current values except for land (worth $60,000), inventory (worth $125,000), and trademarks (worthless). The receivables are shown net of an allowance for doubtful accounts of $12,000. The amounts for buildings, equipment, and trademarks are shown net of accumulated amortization of $14,000, $23,000, and $47,000, respectively. Journal entry for July 1, 2020: Cash Accounts Receivable Inventory Land Buildings Equipment Goodwill Allowance for Doubtful Accounts Accounts Payable Notes Payable Cash 75,000 114,000 125,000 60,000 75,000 90,000 238,000 12,000 300,000 50,000 415,000 (e) Based on the above journal entry, discuss factors that Zoe may have considered in deciding to pay total consideration of $465,000 for Soorya