Question

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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