Assume that mergaronite took over hill on january 1, 2011, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. on january 1, 2011, hill's land wa

Assume that mergaronite took over hill on january 1, 2011, by issuing 7,000 shares of common stock having a par value of $10 per share but a fair value of $100 each. on january 1, 2011, hill's land was undervalued by $20,000, its buildings were overvalued by $30,000, and equipment was undervalued by $60,000. the buildings had a 10-year remaining life; the equipment had a 5-year remaining life. a customer list with an appraised value of $100,000 was developed internally by hill and was to be written off over a 20-year period.