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