Fast Cool Company and Fast Air Company are both manufacturers of air conditioning equipment. On January 1, 2015, Fast Cool acquires the common stock of Fast Air by exchanging its own $1 par, $20 fair...

Fast Cool Company and Fast Air Company are both manufacturers of air conditioning equipment. On January 1, 2015, Fast Cool acquires the common stock of Fast Air by exchanging its own $1 par, $20 fair value common stock. On the date of acquisition, Fast Air has the following balance sheet:

Fast Cool requests that an appraisal be done to determine whether the book value of Fast Air’s net assets reflect their fair values. The appraiser determines that several intangible assets exist, although they are unrecorded. If the intangible assets do not have an observable market, the appraiser estimates their value. The appraiser determines the following fair values and estimates: