P$4-36$ Comprehensive Problem: Differential Apportionment

Prince Corporation acquired $100$ percent of Sword Company on January $1,20$X$7,$ for $$203,000.$ The trial balances for the two companies on December $31,20$X$7,$ included the following amounts:

$\backslash$table$[[$Item$,$Prince Corporation,Sword Company$],[$Debit$,$Credit,Debit,Credit$],[$Cash$,$$$82,000,,$$$25,000,],[$Accounts Receivable,$50,000,,55,000,],[$Inventory$,170,000,,100,000,],[$Land$,80,000,,20,000,],[$Buildings & Equipment,$500,000,,150,000,],[$Investment in Sword Company,$240,000,,,],[$Cost of Goods Sold,$500,000,,250,000,],[$Depreciation Expense,$25,000,,15,000,],[$Other Expenses,$75,000,,75,000,],[$Dividends Declared,$50,000,,20,000,],[$Accumulated Depreciation,,$$155,000,,$$$75,000$