Yankee Corporation acquired 80% of the outstanding stock of Gary Corporation in December 31, 2019 for $735,000 cash. The acquisition occurred on the last day of the fiscal year for both companies. Yankee paid an additional $15,000 in direct acquisition costs to consumate the purchase. The following balance sheet of the parent and subsidiary were prepared immediately subsequent to the investment: Yankee Gary Cash $115,000 $60,000 Accounts receivable 290,000 160,000 Inventory 520,000 80,000 Land 1,000,000 100,000 Building (net) 700,000 230,000 Equipment (net) 1,500,000 400,000 Investment in Gary 750,000 Goodwill ------- ------- Current liabilities $500,000 $850,000 Bond Payable 400,000 Common stock ($1par) 600,000 100,000 Paid-in-capital in excess of par 1,400,000 110,000 Retained earnings 2,375,000 335,000 Total $ - $ - On the purchase date some of Gary Corporation's assets were recorded at book value, not consistent with fair value. The following fair values were obtained Inventory $120,000 Land 185,000 Buildings 350,000 Equipment 465,000 Instructions: 1. Prepare a zone analysis Group Total Ownership Portion Cumulative Total Priority accounts Nonpriority accounts Price Analysis: Price paid (including any direct acquisition costs) Assign to priority accounts, controlling share Assign to nonpriority accounts, controlling share Extraordinary gain