Prince Corporation acquired 100 percent of Sword Company on January 1, 20x7, for $203,000. The trial balances for the two companies on December 31, 20X7, included the following amounts: Prince Corporation Sword Company Iten Debit Crediti Debit Credit Cash $ 82,000 $ 25,000 Accounts Receivable 50.000 55,000 Inventory 170,000 100,000 Land 80,000 20,000 Buildings and 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 Accounts Payable 70,000 35,000 Mortgages Payable 200,000 50,000 Common Stock 300,000 50,000 Retained Earnings 290,000 100,000 Sales 700,000 400,000 Income from Sword Company 57,000 $1,772,000 $1,772,000 $710,000 $710,000 Additional Information 1. On January 1, 20X7, Sword reported net assets with a book value of $150,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20x7. 2. Sword's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment, Consolidation Worksheet Entries