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Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $77,750 and
Peace Computer Corporation acquired 75 percent of Symbol Software Company's stock on January 2, 20X3, by issuing bonds with a par value of $77,750 and a fair value of $95,250 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow:
Peace Computer Company | Symbol Software Company | |||
Book Value | Fair Value | Book Value | Fair Value | |
Cash | $218,000 | $218,000 | $65,000 | $65,000 |
Other Assets | $412,000 | $412,000 | $134,000 | $134,000 |
Total Debits | $630,000 | $199,000 | ||
Current Liabilities | $92,000 | $92,000 | $72,000 | $72,000 |
Common Stock | $296,000 | $65,000 | ||
Retained Earnings | $242,000 | $62,000 | ||
Total Credits | $630,000 | $199,000 |
Prepare a consolidated balance sheet immediately following the acquisition.
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