On January 2, 2020, Coronado Company acquired 90% of the outstanding common stock of Sunny Company for $387,000 cash. Just before the acquisition, the balance sheets of the two companies were as follows: Coronado Sunny Cash $740,000 $140,000 Accounts Receivable (net) 420,000 60,000 Inventory 295,000 128,000 Plant and Equipment (net) 950,000 215,000 Land 200,000 80,000 Total Assets $2,605,000 $623,000 Accounts Payable $302,000 $124,000 Mortgage Payable 160,000 135,000 Common Stock, $2 par value 1,025,000 200,000 Other Contributed Capital 560,000 65,000 Retained Earnings 558,000 99,000 Total Equities $2,605,000 $623,000 The fair values of Sunny's assets and liabilities are equal to their book values with the exception of land. Module Two Problem Set 2 of 6 - /