The total cost of the acquisition was $1,088,415, which exceed the fair value of
the net assets of NMMC, Inc. by $460,836
NOTE 9 -- ACQUISITION
On February 23, 1998, Loraca issued 2,100,000 shares of common stock for 100
percent of NMMC, Inc.'s outstanding shares of common stock valued at $1,088,415
in a business combination accounted for as a purchase. NMMC, Inc. primarily
engages in mortgage broker services relating to single family residences in New
Mexico. The results of operations of NMMC, Inc. are included in the
accompanying consolidated financial statements since the date of acquisition.
The total cost of the acquisition was $1,088,415, which exceed the fair value of
the net assets of NMMC, Inc. by $460,836. The excess was recorded as goodwill
and is being amortized over 15 years on the straight-line basis. |
