Ellen Company acquired all of Lil Wayne Corporation's assets and liabilities on June 30, 2021. Lil Wayne reported assets with a book value of $100,000 and liabilities of $55,000. Ellen noted that Lil Wayne included the amount $7,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Ellen also determined that an old machine previously used by Lil Wayne had a fair value of $15,000 but had not been recorded by Lil Wayne. Except for machinery and equipment, all the other assets and liabilities of Lil Wayne approximated their fair values. In recording the transfer of assets and liabilities in its books, Ellen recorded a gain of $15,000 and paid $34,000 to acquire Lil Wayne's net assets. If the book value of Lil Wayne's machinery and equipment was $36,000, what was their fair value?
Ellen Company acquired all of Lil Wayne Corporation's assets and liabilities on June 30, 2021. Lil Wayne reported assets with a book value of $100,000 and liabilities of $55,000. Ellen noted that Lil Wayne included the amount $7,000 for an obsolete inventory at the acquisition date that did not appear to have any value. Ellen also determined that an old machine previously used by Lil Wayne had a fair value of $15,000 but had not been recorded by Lil Wayne. Except for machinery and equipment, all the other assets and liabilities of Lil Wayne approximated their fair values. In recording the transfer of assets and liabilities in its books, Ellen recorded a gain of $15,000 and paid $34,000 to acquire Lil Wayne's net assets. If the book value of Lil Wayne's machinery and equipment was $36,000, what was their fair value?
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