Purchase, Date of Acquisition On January 1, 2003, Peach Company issued 1,500 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,700, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows: LO7 Peach Swartz Company Company Cash $ 73,000 $ 13,000 Accounts Receivable (net) 95,000 19,000 Inventory 58,000 25,000 Plant and Equipment (net) 95,000 43,000 Land 26,000 22,000 Total Assets $347,000 $122,000 Accounts Payable $ 66,000 $ 18,000 Notes Payable 82.000 21,000 Common Stock, $20 par value 100,000 40,000 Other Contributed Capital 60,000 24,000 Retained Earnings $ 39,000 19,000 Total Equities $347,000 $122,000 Any difference between the cost of the investment and the book value of equity acquired relates to goodwill.

Required:

A. Prepare the journal entry on Peach Company’s books to record the exchange of stock.

B. Prepare a Computation and Allocation Schedule for the difference between purchase price and book value.

C. Prepare a consolidated balance sheet at the date of acquisition.