eich Bread Company acquired all of Butter Company's outstanding shares on 12/31/20 for $190,000 and by issuing 5,000 of its $5 par common stock (fair value $40). Bread will operate Butter as a wholly owned subsidiary (both entities will continue into the future). Butter's financial status at the date of acquisition is below. Additionally, Bread agreed to pay $30,000 (present value $11,000) to the former owners of Butter contingent on meeting certain income goals in 2021. Record the journal entry for acquisition on 12/31/20. Is there goodwill or bargain purchase and how much? Account Cash Book Value Fair Value $116,000 $116,000 Other current assets $40,000 $20,000 Building (remaining useful life 4 years) $340,000 $400,000 Customer List (10 year useful life) 10. $38,000 Accounts Payable (90,000) (90,000) Long-term Debt-due 12/31/22 (60,000) (80,000) Common Stock (10,000) Additional Paid-in-capital 36,000) Retained Earnings, 12/31/19 300,000) A- B Does it result in goodwill or a gain on bargain purchase and how much? Account Debit Credit 22 Finis Time