Planter Corporation used debentures with a par value of $577,000 to acquire 100 percent of Sorden...
Planter Corporation used debentures with a par value of $577,000
to acquire 100 percent of Sorden Company’s net assets on January 1,
20X2. On that date, the fair value of the bonds issued by Planter
was $561,000. The following balance sheet data were reported by
Sorden:
| Balance Sheet Item | Historical Cost | Fair Value | |||||||
| Assets | |||||||||
| Cash & Receivables | $ | 63,000 | $ | 56,000 | |||||
| Inventory | 118,000 | 202,000 | |||||||
| Land | 62,000 | 103,000 | |||||||
| Plant & Equipment | 405,000 | 302,000 | |||||||
| Less: Accumulated Depreciation | (150,000 | ) | |||||||
| Goodwill | 19,000 | ||||||||
| Total Assets | $ | 517,000 | $ | 663,000 | |||||
| Liabilities and Equities | |||||||||
| Accounts Payable | $ | 41,000 | $ | 41,000 | |||||
| Common Stock | 97,000 | ||||||||
| Additional Paid-In Capital | 50,000 | ||||||||
| Retained Earnings | 329,000 | ||||||||
| Total Liabilities & Equities | $ | 517,000 | |||||||
Required:
Determine the amount Planter Corporation would record as a gain on
bargain purchase and prepare the journal entry Planter would record
at the time of the exchange. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
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Planter Corporation used debentures with a par value of $577,000
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PLEASE SHOW WORKING Kash, Inc used debentures with a par value of $660,000 to acquire 100%...
PLEASE SHOW WORKING
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PLEASE SHOW WORKING
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