Ball Corporation's owners recently offered to sell 100 percent of their ownership to Timber Corporation for $450,000. Timber's business manager was told that Ball's book value was $300,000, and she estimates the fair value of its net assets at approximately $600,000. Ball has relatively old equipment and manufacturing facilities and uses a LIFO basis for inventory valuation of some items and a FIFO basis for others.

Required
If Timber accepts the offer and acquires a controlling interest in Ball, what difficulties are likely to be encountered in assigning the differential?