Plex company purchaseds% of the outstanding common stock of Sesnor Company on January 1, 2009 for $s7ooa00, COST METHOD USED BY PARENT Jan 1, 2009 Investment in subsidiary-Sesnor 5 5,700,000 The Sesnor company balancesheet on /yo9and 12/21 izare as follows: Fair value 120,000 120,000 Accounts Receivable 350,000 450,000 1,275.000 950.000 1.275,000 Net Plant Assets 3200,000 3450,000 3200,000 1,000,000 S 1,000,000 2500.000 Other Assets Total Assets 6360.000 Accounts payable Other Liabilities 500.000 S 25.000 750,000 250 000 Total Liabilities Common Stock (Par S10 100,000 APIC 900,000 900,000 Retained Earnings 3070.000 S 3RES 000 Total Equity Total Uabilities & Equity S 000 360,000 Fair Value Given Up 5,700,000 1.005,882 6705,882 Book Value Received 3459.500 S 610,500 4070.000 2,240,500 s 395,382 2,635,882 1.275,000 225,000 1.500.000 Difference Land other Liabilities 212,500 37,500 250,000 1.178,000 207,882 1.385,882. Goodwill S 1,178,000 s 207.882 -s 1.385.882 Balance