5 Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $181,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: 5 points Iten Cash Accounts Receivable Prince Corporation Debit $ 93,000 59,000 Credit Sword Company Debit Credit eBook References Inventory Land Buildings and Equipment Investment in Sword Company Cost of Goods Sold Depreciation Expense Other Expenses Dividends Declared Accumulated Depreciation Accounts Payable Mortgages Payable Common Stock Retained Earnings Sales Incone from Sword Company Additional Information 171,000 91,000 499,000 222,000 499,000 23,000 65,000 $ 44,000 64,000 104,000 39,000 163,000 259,000 13,000 65,000 63,000 20,000 $ 152,000 66,000 192,000 289,000 335,000 $ 65,000 30,000 247,000 46,000 82,000 690,000 401,000 61,000 51,785,000 $1,785,000 $771,000 $771,000 1. On January 1, 20X7, Sword reported net assets with a book value of $128,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7. 2. Sword's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment. 3. Prince used the equity-method in accounting for its investment in Sword. 4. Detailed analysis of receivables and payables showed that Sword owed Prince $25,000 on December 31, 20X7.