On January 1, 2016, Prima Company issued 1,500 of its $20 par value common shares with a fair value of $50 per share in exchange for 2,000 outstanding common shares of Swatch 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:

Prima

Swatch

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

20,000

Total Assets

$ 347,000

$ 120,000

Accounts Payable

$ 66,000

16,000

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 Liabilities and Equities

$ 347,000

$ 120,000

Any differences between the book value of equity and the value implied by the purchase price relates to Land.

Required:

1. Prepare the journal entry on Prima's books to record the exchange of stock.
2. Prepare Computation and Allocation Schedule for the Difference between book value and value implied by the purchase price.
3. Calculate the consolidated balance for each of the following accounts as of December 31, 2016:

1.Cash

2.Land

3.Common Stock

4.Other Contributed Capital