Born Corporation agrees to acquire the net assets of Wren Corporation on January 1, 2015.Wren has the following balance sheet on the date of acquisition:

An appraiser determines that in-process R&D exists and has an estimated value of $20,000. The appraisal indicates that the following assets have fair values that differ from their book values:
Fair Value
Inventory...........................................$ 98,000
Equipment..........................................340,000
Trademark............................................30,000
Required
Use value analysis to prepare the entry on the books of Born Corporation to acquire the net assets of Wren Corporation under each of the following purchase price scenarios:
1. Purchase price is $540,000.
2. Purchase price is $350,000.

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Wren Corporation Balance Sheet January 1, 2015 Assets Liabilities and Equity Accounts receivable Inventory Other current assets Equipment (net Trademark $ 79,000 Current liabilities $125,000 100,000 200,000 50,000 75,000 $550,000 92,000 Bonds payable 55,000 Common stock 294,000 Paid-in capital in excess of par 30,000 Retainedearnings Total assets. $550,000 Total liabilities and equity