Question: Carlin & Associates Inc. purchased 20% of the outstanding shares of Ice Ltd. For $244,000. The investment is being accounted for using the equity method. The net assets of Ice Ltd. follows: Book value Fair value Cash & receivables 120,000 120,000 PPE (15 yrs remaining life) 420,000 725,000 Land 200,000 300,000 Liabilities 85,000 85,000 Calculate the total difference between book value and fair value of the net assets.