EXERCISE 3-4 Purchase, Date of Acquisition On January 1, 2010, 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. A. Prepare the journal entry on Peach Companys books to record the exchange of stock. B. Prepare a Computation and Allocation Schedule for the difference between book value and value implied by the purchase price. C. Prepare a consolidated balance sheet at the date of acquisition