Water purchased 9,000 of Sands 30,000 shares on 4/1/20X0 for $34,000. At 1/1/20X0, Sand had Common Stock of $30,000 and Retained Earnings of $55,000. During the 12 months ended 12/31/20X0, Sand earned income of $100,000. Annual dividends of $1 per share were authorized by the Board of Directors to be paid in equal amounts at the end of each quarter. The book values and fair values of Sands assets and liabilities on 4/1/20X0 were as follows: (note partial year acquisition)

Assets:	Sand Book Values	Sand Fair Values
Cash	$20,000	$20,000
Receivables	30,000	30,000
Inventory (sold in June 20X0)	22,500	40,000
Land	50,000	40,000
Building (10 year Life)	70,000	60,000
Equipment (8 year Life)	40,000	40,000
Patents (5 year life)	0	60,000
Total Assets	$232,500	$290,000
Liabilities:
Accounts Payable	$80,000	$80,000
Notes Payable (Matures on 4/1/20X3)	50,000	70,000

Requirements:

1. Calculate the Difference (Excess)
2. Calculate the goodwill/(bargain purchase gain)
3. Prepare the purchase price allocation and amortization schedule

COST			COST
BOOK VALUE			FAIR VALUE
DIFFERENCE			GW (BPG)
PURCHASE PRICE ALLOCATION & AMORTIZATION SCHEDULE
ACCOUNT		4/1/20X0 100% Diff	4/1/20X0 Difference to Assign	GW/BPG Adjustment	Amortization	Unamortized Difference
TOTAL