Sandhill Company purchases Wildhorse Company for $5400000 cash on January 1, 2021. The book value of Wildhorse Company's net assets reported on its December 31, 2020 financial statement was $4000000. An analysis indicated that the fair value of Wildhorse's tangible assets exceeded the book value by $680000, and the fair value of identifiable intangible assets exceeded book value by $360000. Determine the fair value of identifiable net assets used to record goodwill. $320000. $5040000. $4680000. $4000000.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains.the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available.two-thirds of the work related to $15,000 of cash received in advance was performed this period.the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired.wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.