The Hayes Corporation acquired at a cost of $25,000,000 the assets and name of another corporation which it intends to operate as a division. The balance sheet of the acquired corporation showed the following assets:

An appraisal made by an independent appraisal company listed the current values of the assets as follows:

a. At what values should the newly acquired assets be recorded?

b. If the appraisal value of the plant and equipment had been $20,000,000 instead of $12,000,000, at what values would you record the assets?

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Cash and Other Liquid Assets $ 3,000,000 Inventories 5,000,000 16,000,000 1,000,000 Plant and Equipment Land