On January 1, 2024, Sarasota Company acquired all the assets and assumed all the liabilities of Pharoah Company and merged Pharoah into Sarasota. In exchange for the net assets of Pharoah, Sarasota gave its bonds payable with a maturity value of $643,000, a stated interest rate of 10%, interest payable semiannually on June 30 and December 31, a maturity date of January 1, 2034, and a yield rate of 12%. Balance sheets for Sarasota and Pharoah (as well as fair value data) on January 1, 2024, were as follows: Sarasota Pharoah Book Value Book Value Fair Value Cash Receivables $269,120 $103,840 $103,840 347,830 144,890 130,600 Inventories 838,200 253,960 338,000 Land 729,050 96,160 293,000 Buildings 1,027,220 437,380 84,200 Accumulated depreciation-buildings (347,160) (184,580) Equipment 241,710 134,010 34,340 Accumulated depreciation-equipment (71,290) (93,190) Total assets $3,034,680 $892,470 $983,980 Current liabilities $294,390 $95,740 $95,740 Bonds payable, 8% due 1/1/2034, Interest 294,300 254,100 payable 6/30 and 12/31 Common stock, $15 par value 1,092,520 Common stock, $5 par value 239,100 Other contributed capital 896,130 169,910 Retained earnings 751,640 93,420 Total equities $3,034,680 $892,470 Account Titles and Explanation Debit Credit > > > > > > > >