Door Corporation acquires the net assets, exclusive of cash, of Walsh Company on January 1, 2011, at which time Walsh Company’s balance sheet is as follows:

Door Corporation feels that the following fair values should be used for Walsh’s book values:
Cash (no change) ................ $ 30,000
Accounts receivable .............. 60,000
Investment in marketable securities ........150,000
Land ....................450,000
Buildings (no change) .............450,000
Equipment ..................600,000
Accounts payable ................120,000
Income tax payable (no change)..........190,000
Door issues 20,000 shares of its common stock with a $2 par value and a quoted fair value of $60 per share on January 1, 2011, to Walsh Company to acquire the net assets. Door also agrees that two years from now it will issue additional securities to compensate Walsh shareholders for any decline in value below that on the date of issue.

Required

1. Record the acquisition on the books of Door Corporation on January 1, 2011. Include support for calculations used to arrive at the values assigned to the assets and liabilities. Use value analysis to aid your solution.

2. Record payment (if any) of contingent consideration on January 1, 2013, assuming that the quoted value of the stock is $57.50. (Round shares to nearest whole share.)

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Assets Current assets Cash... Accounts receivable 30,000 50,000 $ 80,000 Noncurrent assets: Inveslments in marketable securities Land Buildings (net) Equipment (nel $120,000 600,000 450,000 800,000 100,000 Goodwill 2,070,000 $2,150,000 Liabilities and Siockholders' Equi Current liabilities: Accounts payable Income tax payable $150,000 190,000 340,000 Equily: Common stock($5 par Retained earnings. Total liabilities and equity $1,200,000 610,000 1,810,000 $2,150,000