EXERCISE 3-4 Purchase, Date of Acquisition LO 7 LOS LO 9 On January 1, 2018, 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 acqui- sition, the balance sheets of the two companies were as follows: Peach Company Swartz 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 Notes payable Common stock, $20 par value Other contributed capital Retained earnings Total equities Peach Company $ 66,000 82,000 100,000 60,000 39,000 $347,000 Swartz Company $ 18,000 21,000 40,000 24,000 19,000 $122,000 Any difference between the book value of equity and the value implied by the purchase price relates to goodwill. Required: A. Prepare the journal entry on Peach Company's books to record the exchange of stock