Stringtown Company purchased Stansbury Island Manufacturing for $1,800,000 cash. The book value and fair value of the assets of Stansbury as of the date of the acquisition are listed below.

In addition, Stansbury had liabilities totaling $400,000 at the time of the acquisition.
1. At what amounts will the individual assets of Stansbury be recorded on the books of Stringtown, the acquiring company?
2. How will Stringtown account for the liabilities of Stansbury?
3. How much goodwill will be recorded as part of thisacquisition?

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Book Value Market Value Cash Accounts receivable.. Inventory S 30,000 30,000 300,000 600,000 900,000 $1,180,000 1,830,000 300,000 350,000 500,000 Totals.