Following are the balance sheets of Boogie Musical Corporation and Toot-Toot Tuba Company as of December 31, 20X5.

In preparation for a possible business combination, a team of experts from Boogie Musical made a thorough examination and audit of Toot-Toot Tuba. They found that Toot-Toot€™s assets and liabilities were correctly stated except that they estimated uncollectible accounts at $1,400. The experts also estimated the market value of the inventory at $35,000 and the market value of the plant and equipment at $500,000. The business combination took place on January 1, 20X6, and on that date Boogie Musical acquired all the assets and liabilities of Toot-Toot Tuba. On that date, Boogie€™s common stock was selling for $55 per share.

Required
Record the combination on Boogie€™s books assuming that Boogie issued 9,000 of its $10 par common shares in exchange for Toot-Toot€™s assets andliabilities.

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BOOGIE MUSICAL CORPORATION Balance Sheet December 31, 20X5 Liabilities & Equities Assets Cash Accounts Receivable Allowance for Uncollectible Accounts $ 23,000 Accounts Payable $ 48,000 65,000 200,000 continued) 85,000 Notes Payable (1,200 Mortgage Payable Plant & Equipment Accumulated Depreciation Other Assets Total Assets 192,000 980,000 (160,000) 14,000 $1,132,800 Bonds Payable Capital Stock ($10 par) Premium on Capital Stock Retained Earnings Total Liabilities & Equities 200,000 500,000 1,000 118,800 51.132,800 TOOT-TOOT TUBA COMPANY Balance Sheet December 31, 20X5 Assets Liabilities & Equities Cash Allowance for Uncollectible Accounts Plant & Equipment 300 (600) 451,000 Accounts Payable Mortgage Payable Capital Stock ($50 par) $ 8,200 10,000 50,000 100,000 100,000 150,000 (71,200) $347,000 7,000 Notes Payable 78,500 Bonds Payable Accumulated Depreciation Other Assets (225,000) Premium on Capital Stock 25,800 Retained Earnings Total Assets $347,000 Total Liabilities & Equities