Problem $1-31($Algo$)$ Bargain Purchase LO $1-5$

Power Company purchased Sark Corporation's net assets on January $3,20$X$2,$ for $$625,000$ cash. In addition, Power incurred $$12,000$ of direct costs in consummating the combination. At the time of acquisition, Sark reported the following historical cost and current market data:

$\backslash$table$[[$Balance Sheet Item,Book Value,Fair Value$],[$Assets$,$$$66,000,$$$66,000$