Response to the following problem:
Acquisition Cost
Potluck Corp. acquired all of the net assets of Sauers Corp. on June 30, 2016, in an acquisition reported as a merger. the fair values of Sauers Corp.'s identifiable net assets at the date of acquisition are as follows:
Tangible assets $25,000,000
Intangible assets 90,000,000
Liabilities 55,000,000
Potluck pays $100 million in cash and issues 1,500,000 shares of stock to the former owners of Sauers.
Potluck's stock has a par value of $1/share. the market price of the shares at the date of acquisition, $40/share, is used to value the shares issued.
Registration fees for the stock are $750,000, and legal and consulting fees connected with the acquisition are $900,000, both paid in cash.
Required : Record the acquisition on June 30, 2016 .