Pop,Inc.acquires 100% of the outstanding shares of Snap Corp.for $3,923,450 and accounts for the transaction using the purchase method.The purchase price Pop paid for Snap exceeded Snap's book value for four reasons:
1.Snap's long-term depreciable assets have a market value of $1,250,000.
2.Deferred income taxes of $125,000 arise from the excess of market value over the book value of the depreciable assets.
3.Pop assigns a value of $90,000 to Snap's customer list and records it as an intangible asset.
4.Goodwill exists equal to the difference between the acquisition cost and the market value of the identifiable assets and liabilities acquired.
Information about Pop and Snap's balance sheet at the acquisition date and the current market value of Snap's assets appears below:

\begin{array}{l}\begin{array}{lll}\text {Consolidated Fintancial Information}\\\text {Pop, Inc. and Snap Corp.}\\\text {Acquisition Date}\\\\ \\\\\\\text {Assets}\\\text {Current Assets}\\\text {Depreciable Assetsless}\\\text {Accumulated Depreciation}\\\text {Intangible Asset - Customer}\\\text {List}\\\text {Goodwill}\\\text {Total Assets}\\\\\text {Liabilities and Equities}\\\text {Liabilities}\\\text {Deferred Income Tax Liability}\\\text {Shareholders' Equity}\\\text {Total Liabilities and Equities}\\\end{array}\begin{array}{lll}\\\\\\&&\text {Snap at }\\&&\text {Current }\\ \text { Historical}& \text { Historical}& \text {Market }\\ \text { Cost-Pop}& \text { Cost-Snap}& \text {Value }\\\\\$ 4,230,600 & \$ 1,330,000 &\$ 1,330,000 \\\$ 7,245,000 & \$ 945,000 &\$ 1,250,000\\\\\$ 0 & \$ 0 &\$ 90,000 \\\\\$ 0 & \$ 0\\\$ 11,475,600 & \$ 2,275,000\\\\ \\\$ 6,100,600 & \$ 1,670,000 & \$ 1,670,000 \\\$ 0 & \$ 0 & \$ 125,000 \\\$ 5,375,000 & \$ 605,000 & \\\$ 11,475,600 & \$ 2,275,000 &\end{array}\begin{array}{lll}\\\\\\\\\text {Consolidater }\\\text {at Date of }\\\text {Acq }\\\\\\ \\ \\ \\ \\ \\ \\\\\\\\\\\\\\\end{array}\end{array}

Required: Complete the table for Snap's current market values and the consolidated amounts at the date of acquisition.

GAAP Stipulates That Firms Should Do What with Expenditures That

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