Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition:     Historical Cost Fair Value Cash and Receivabled 80,000 75,000 Inventory 145,000 200,000 Land 75,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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  1. Alpha Company used debentures with a par valueof $660,000 to acquire 100% of Zeta, on January 1, 2013. On that date the fair value of the debentures issued was $644,000. The following balance sheet data were reported by Zeta at the point of the acquisition:

 

 

Historical Cost

Fair Value

Cash and Receivabled

80,000

75,000

Inventory

145,000

200,000

Land

75,000

75,000

Plant & Equipment

450,000

350,000

Less: Accumulated Depreciation

-170,000

 

Total Assets

580,000

700,000

 

Accounts Payable

 

50,000

 

50,000

Common Stock

100,000

 

Additional Paid i n Capital

60,000

 

Retained Earnings

370,000

 

Total Liabilities & Equity

580,000

 

 

Prepare the entry to record the above transaction.

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