Explain about the fair value of the net assets

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During 2020, Spokane Ltd. purchased the net assets of Tacoma Corp. for $635,000. On the date of the transaction, Tacoma reported $200,000 in liabilities. As well, the fair value of Tacoma's assets were:

Current assets$ 360,000

Noncurrent assets840,000

$1,200,000

Problem 1: How should the difference between the fair value of the net assets acquired and the cost be accounted for by Spokane?

Reference no: EM132971352

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