5 saveed corporation purchased the net assets of penny inc on january 2 2011 for 1 6 4307731

5) Saveed Corporation purchased the net assets of Penny Inc. on January 2, 2011 for $1,690,000 cash and also paid $15,000 in direct acquisition costs. Penny dissolved as of the date of the acquisition. Penny's balance sheet on January 2, 2011 was as follows:

Accounts receivable-net$190,000Current liabilities$235,000

Inventory480,000Long term debt650,000

Land10,000Common stock ($1 par)25,000

Building-net630,000Paid-in capital150,000

Equipment-net  240,000Retained earnings  590,000

Total assets$1,650,000Total liab. & equity $1,650,000

Fair values agree with book values except for inventory, land, and equipment, which have fair values of $640,000, $140,000 and $230,000, respectively. Penny has customer contracts valued at $20,000.

Required: