Fortune Corporation used debentures with a par value of $625,000 to acquire 100 percent of Sorden Company€™s net assets on January 1, 20X2. On that date, the fair value of the bonds issued by Fortune was $608,000. The following balance sheet data were reported by Sorden:

Required
Give the journal entry that Fortune recorded at the time ofexchange.

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Balance Sheet Item Historical Cost Fair Value Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Goodwill Total Assets S 55,000 105,000 60,000 400,000 (150,000) 10,000 $480,000 S 50,000 100,000 60,000 270,000 $480,000 $50,000 200,000 100,000 300,000 $650,000 $50,000 Accounts Payable Comm Additional Paid-In Capital Retained Earnings Total Liabilities & Equities