Using the fair value method of valuation Inglewood Inc. should proceed and plan to acquire Arizona Corporation being they are paying less than the actual fair value of the business. From the analysis and information provided the Arizona Corporation looks to be purchase at a bargain since the goodwill is negative. Inglewood Inc would analyze the date and see that Arizona Corporation is undervalued and a purchase by Inglewood Inc should lead to a profit for them as a result.

Answer rating: 100% (QA)

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