Paulcraft Corporation builds large powerboats. On January 1, 2011, Paulcraft acquires

Switzer Corporation, a company that manufactures smaller power boats. Paulcraft pays

cash in exchange for Switzer common stock. Switzer has the following balance sheet on

January 1, 2011:

Assets Liabilities and Equity

Accounts receivable .. ... 82,000 Current liabilities .. . .. . . . . .. . . . $ 90,000

Inventory . .. .... ...... . .. . 40,000 Bonds payable . . . . . . .. .. . . .. . 100,000

Land.. .. . .. .... .... .. . .. . 60,000 Common stock ($1 par). . .. . . . . . 10,000

Buildings . .. .... ...... . .. . 200,000 Paid-in capital in excess of par . . . 90,000

Accumulated depreciation (50,000) Retained earnings . . . . . . .. . . . . . 112,000

Equipment .. .. .. .... .. ... . 100,000

Accumulated depreciation (30,000)

Total assets.. .. .... .. ... . $402,00 Totalliabilities and equity .. . . . $402,000

Appraisal values for identi?able assets and liabilities are as follows:

Accounts receivable . .. ... .. . . .. .. . . ... .. .. .. 82,000

Inventory (sold during 2011).. .. . . .. . . . .... .. .. 38,000

Land. .. . .. .. .. .... .. . . . . . .. .. . . .. . .... .. . . 150,000

Buildings (20-year life) .. .... .. . . .. . . . .... .. .. 280,000

Equipment(5-year life).. . . . . .. .... . .. . . . . .. . . . 100,000

Current liabilities . .. . . . . . .. .. .. ... . . . . .. . . .. . 90,000

Bonds payable (5-year life) . . . . .. .. ... .. . . .. .. . 96,000

Any remaining excess is attributed to goodwill.

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Refer to the preceding information for Paulcraft