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On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized...

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Accounting

On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows:

Tower Corp. Brown Company
Item Book Value Fair Value
Cash $ 15,000 $ 5,000 $ 5,000
Accounts Receivable 36,000 16,000 16,000
Inventory 91,000 22,000 27,000
Buildings & Equipment (net) 126,000 59,000 79,000
Investment in Brown Stock 131,000
Total $ 399,000 $ 102,000 $ 127,000
Accounts Payable $ 21,000 $ 3,000 $ 3,000
Bonds Payable 148,000 19,000 19,000
Common Stock 47,000 16,000
Retained Earnings 183,000 64,000
Total $ 399,000 $ 102,000 $ 22,000

REQUIRED:

Calculate the amount of Goodwill or Gain that resulted from the acquisition.

Prepare the workpaper eliminating journal entries.

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