Advanced Acc. Homework #1 Q. 1 On January 1, 2019, Rami Corporation purchased 25% of the outstanding common stock of Sawsan Corporation for $100,000 cash. Book value and fair value of Sawsan's assets and liabilities at the time of acquisition are shown below. Assets Cash Accounts receivable Inventories Equipment Book Values $40,000 100,000 40,000 180,000 $360,000 Fair Values $40,000 90,000 50,000 210,000 $390,000 Liabilities & Equities Accounts payable Note payable Capital stock Retained earnings $110,000 40,000 $110,000 50,000 100,000 100.000 $360,000 $150,000 Required: Prepare an allocation schedule for Rami's investment in Sawsan