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Pls Show the work! Cali Inc. paid cash and purchased the assets of Fan Inc. at...

Pls Show the work!

Cali Inc. paid cash and purchased the assets of Fan Inc. at an auction for 4,900,000 on October 8, 2017. the information on the book values of the assets on Fan's balance sheet is listed below:

Land 820,000

Building 1,118,000

Inventory 530,000

Machine 780,000

Based on an independent appraisal, the fair value of inventory is determined to be equal to its book value, and the fair value of land, building, and machine are determined to be $1,850,000, $3,400,000 and $220,000, respectively.

Use the information above to answer question1.

Question 1. at the time of the purchase, Cali estimates that the machine has a useful life of 10 years and a salvage value of 7,000. Cali sells this machine one July 1, 2019 for 112,000. Assuming that Cali to record the sale of the machine will include approximately a:

A. Gain of 19,312

B. Loss of 37,448

C. Gain of 18,837

D. Loss of 38,887

E. None of the above

Question 2.  Vitk Company and Bio Company were combined in a purchased transaction. Vitk was able to acquire Bio at a bargain price. the fair value of identifiable assets acquired less the fair value of liability assumed exceeded the cost to Vitk. What would be the proper accounting treatment to record the merger transaction.

A. report the different between the fair value of Bio's net identifiable assets and purchase price paid by Vitk as a gain.

B. report the different between the fair value of Bio's net identifiable assets and purchase price paid by Vitk as a goodwill.

C. report the different between the carrying value of Bio's net identifiable assets and purchase price paid by Vitk as a gain.

D. report the different between the fair value of Bio's net identifiable assets and purchase price paid by Vitk as a paid-in capital.

E. none of the above

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