Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances: Assets Liabilities and Stockholders’...
| Astor Corporation’s balance sheet at January 1, 20X7, reflected the following balances: |
| Assets | Liabilities and Stockholders’ Equity | |||||||||
| Cash & Receivables | $ | 80,000 | Accounts Payable | $ | 40,000 | |||||
| Inventory | 120,000 | Income Taxes Payable | 60,000 | |||||||
| Land | 70,000 | Bonds Payable | 200,000 | |||||||
| Buildings & Equipment (net) | 480,000 | Common Stock | 250,000 | |||||||
| Retained Earnings | 200,000 | |||||||||
| Total Assets | $ | 750,000 | Total Liabilities & Stockholders’ Equity | $ | 750,000 | |||||
|
Phel Corporation, which had just entered into an active acquisition program, acquired 100 percent of Astor’s common stock on January 2, 20X7, for $576,000. A careful review of the fair value of Astor’s assets and liabilities indicated the following: |
| Book Value | Fair Value | |||||||
| Inventory | $ | 120,000 | $ | 140,000 | ||||
| Land | 70,000 | 60,000 | ||||||
| Buildings & Equipment (net) | 480,000 | 550,000 | ||||||
| Assume the book values of Phel’s Inventory, Land, and Buildings and Equipment accounts are $300,000, $85,000, and $1,200,000, respectively. |
| Required: |
|
Compute the appropriate amount to be included in the consolidated balance sheet immediately following the acquisition for each of the following items: |
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