Sarasota Company acquired the assets (except for cash) and assumed the liabilities of Pharoah Company on January 1, 2024, paying $737,000 cash. Pharoah Companys December 31, 2023, balance sheet, reflecting both book values and fair values, showed: Book Value Fair Value Accounts receivable (net) $89,000 $82,300 Inventory 103,000 116,500 Land 101,700 155,200 Buildings (net) 386,000 461,800 Equipment (net) 254,000 310,000 Total $933,700 $1,125,800 Accounts payable $100,000 $100,000 Note payable 197,000 197,000 Common stock, $2 par value 170,000 Other contributed capital 246,000 Retained earnings 220,700 Total $933,700 As part of the negotiations, Sarasota Company agreed to pay the former stockholders of Pharoah Company $203,300 cash if the post-combination ear