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Allocation of Purchase Price to Various Assets and LiabilitiesCompany S has no long-term marketable securities. Assume the following scenarios:Case AAssume that P Company paid $130,000 cash for 100% of the net assets of S Company.S CompanyAssetsCurrent Assets Long-lived Assets Liabilities Net AssetsBook Value $15,000 $85,000 $20,000 $80,000Fair Value 20,000 130,000 30,000 120,000Case BAssume that P Company paid $110,000 cash for 100% of the net assets of S Company.S CompanyAssetsCurrent Assets Long-lived Assets Liabilities Net AssetsBook Value $15,000 $85,000 $20,000 $80,000Fair Value 30,000 80,000 20,000 90,000Case CAssume that P Company paid $15,000 cash for 100% of the net assets of S Company.S CompanyAssetsCurrent Assets Long-lived Assets Liabilities Net AssetsBook Value $15,000 $85,000 $20,000 $80,000Fair Value 20,000 40,000 40,000 20,000Required:Complete the following schedule by listing the amount that would be recorded on P’s books.AssetsRetained EarningsGoodwill Current Assets Long-lived Assets Liabilities (Gain in Income Statement)Case ACase BCase C
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