Planter Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sorden Company's net assets on January1, 20X2. On that date, the fair value of the bonds issued by Planter was $627,000. The following balance sheet data were reported bySorden:Balance Sheet ItemAssetsCash and ReceivablesInventoryLandPlant and EquipmentLess: Accumulated DepreciationGoodwillTotal AssetsLiabilities and EquitiesAccounts PayableCommon StockAdditional Paid-In CapitalRetained EarningsTotal Liabilities and EquitiesHistoricalCost$ 56,000114,00064,000414,000(154,000)12,000$ 506,000$ 49,00084,00057,000316,000$ 506,000Fair Value$ 48,000182,00092,000290,000$ 612,000$ 49,000Required:Prepare the journal entry that Planter recorded at the time of exchange.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Cash and Recievables $ 48,000Inventory $ 1,82,000Land $ 92,000Plant and…

Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sord- On that date, the fair value of the bonds issued by Planter was $627,000. The following ba Balance Sheet Item and Receivables ory and Equipment Accumulated Depreciation _1 assets ties and Equities Historical Cost $/56,000 114,000 64,000 Fair Value $ 48,000 182,000 92,000 290,000 414,000 (154,000) 12,000 $ 506,000 $ 612,000

Corporation used debentures with a par value of $644,000 to acquire 100 percent of Sord- On that date, the fair value of the bonds issued by Planter was $627,000. The following ba Balance Sheet Item and Receivables ory and Equipment Accumulated Depreciation _1 assets ties and Equities Historical Cost $/56,000 114,000 64,000 Fair Value $ 48,000 182,000 92,000 290,000 414,000 (154,000) 12,000 $ 506,000 $ 612,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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