EXERCISE 34 Purchase, Date of Acquisition LO 7LO 8LO 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 acquisition, 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 $ 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 book value of equity and the value implied by the purchase price relates to goodwill. Required: Prepare the journal entry on Peach Company's books to record the exchange of stock. Prepare a Computation and Allocation Schedule for the difference between book value and value implied by the purchase price. Prepare a consolidated balance sheet at the date of acquisition.