Acquisition, Cost Allocation, and Derecognition Goodwill and Bargain Purchase Computations The trial balance for the Dark Horse Company follows: Description Cash Debit Credit 30,000 Inventory 100,000 Property, plant, and equipment - Net 370,000 Current liabilities $ 50,000 Common stock-No par 150,000 Retained earnings 300,000 Totals 500,000 $ 500,000 MPL, Inc. offers to acquire Dark Horse. The additional information is given below: Purchase price $ 650,000 (Requirement 1 assumption) Purchase price $ 250,000 (Requirement 2 assumption) Fair market value of the inventory. $ 180,000 The plant assets were undervalued by $ 50,000