Asset Purchase, Cash and Stock Pretzel Company acquired the assets (except for cash) and assumed the liabilities of Salt Com- pany on January 2,2012. As compensation, Pretzel Company gave 30,000 shares of its common stock, 15,000 shares of its 10% preferred stock, and cash of$50,000 to the stockholders of Salt Company. On the acquisition date, Pretzel Company stock had the following characteristics PRETZEL COMPANY Stock Common Preferred Par ValueFair s 10 100 s 25 100 Immediately prior to the acquisition, Salt Company's balance sheet reported the following book values and fair values SALT COMPANY Balance Sheet January 2, 2012 Book valweFair alur Accounts receivable (net of $11,000 allowance) Inventory-LIFO cost Land Buildings and equipment (net) Total assets Current liabilities Bonds Payable: 10% Common stock, $5 par value Other contributed capital Retained earnings Total liabilities and stockholders' equity 165,000 165,000 198,000 330,000 550,000 1,144,000 1,144,000 $2.200.0002 387.000 $275,000 275,000 220,000 396,000 450,000 770,000 495,000 09,000 8 @1