Heinrich Company, owned by Elennor and Al Heinrich, has been experiencing financial difficulty for the past several years. Both Elennor and Al have not been in good health and have decided to find a buyer. P&F International, after reviewing the financial statements for the previous three years, has decided to make an offer of $150,000 for the net assets of Heinrich Company on January 1, 2016. The balance sheet as of this date is as follows:

In reviewing the above balance sheet, P&F’s appraiser felt the liabilities were stated at their fair values. He placed the following fair values on the assets of the company.

Required

Using this information, do value analysis, and prepare the entry to record the acquisition of the net assets of Heinrich Company on the books of P&F International.