How transaction will be recorded by abc

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An independent appraisal firm has determined that the fair values of the identifiable assets acquired by ABC on 1/1/2015 are:

Assets                                                                          Fair value (in Millions of dollars)

2 single-family homes                                                                $48

1 story office building                                                                  $40

All the in-place leases for single-family homes and office building            $2

Total                                                                                          $90

Problem (a) How this transaction will be recorded if ABC paid for this group of assets $95 million?

Problem (b) Assume that the group of assets acquired is not a business according to ASC 805 and ABC paid for it $88 million. How this transaction will be recorded by ABC?

Reference no: EM132976949

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