Purnell Corporation acquires Sentinel Corporation on December 31, 2015. Sentinel has the following balance sheet on the date of acquisition: An appraisal is performed to determine whether the book...

Purnell Corporation acquires Sentinel Corporation on December 31, 2015. Sentinel has the following balance sheet on the date of acquisition:

An appraisal is performed to determine whether the book values of Sentinel’s net assets reflect their fair values. The appraiser also determines that intangible assets exist, although they are not recorded. The following fair values for assets and liabilities are agreed upon: