You also need to use your own blank Word document to complete and submit required 2 of this assignment. Save it as Week 1 Your first name, Your last name as well. (You can use the same name because the first file is an Excel and the second file is a Word). Do include a cover sheet and must use double line (to make it easier to read).

NEVER use pdf file to save and submit any assignment to me because I will not be able to make comments, save and return it back to you. In this case you will NOT earn any credit.

There is at least a 10% points deduction for failing to follow this instruction.

Summary:

1. Submit one Word file which you will have to create on your own.

—————————————-

Arizona Corp. had the following account balances at 12/1/19: 

• Receivables: $96,000; Inventory: $240,000; Land: $720,000; Building: $600,000; Liabilities: $480,000; Common stock: $120,000; Additional paid-in capital: $120,000; Retained earnings, 12/1/19: $840,000; Revenues: $360,000; and Expenses: $264,000.

Several of Arizona’s accounts have fair values that differ from book value. The fair values are:

• Land — $480,000; Building — $720,000; Inventory — $336,000; and Liabilities — $396,000.

Inglewood Inc. acquired all of the outstanding common shares of Arizona by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000.

Imagine you are the decision maker at Inglewood Inc.

Prepare a fair value allocation and goodwill schedule at the date of the acquisition. 

Determine in 525- words whether you would encourage acquiring Arizona Corp? Be sure to include your rationale.