On January 1, 2010, Peach Company issued 1,500 of its $20 par value common shares with a fair value of $60 per share in exchange for the 2,000 outstanding common shares of Swartz Company in a purchase transaction. Registration costs amounted to $1,700, paid in cash. Just prior to the acquisition, the balance sheets of the two companies were as follows:

Any difference between the book value of equity and the value implied by the purchase price relates to goodwill.

Required:
A. Prepare the journal entry on Peach Company’s books to record the exchange of stock.
B. Prepare a Computation and Allocation Schedule for the difference between book value and value implied by the purchase price.
C. Prepare a consolidated balance sheet at the date ofacquisition.

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Peach Company Swartz Company Cash Accounts receivable (net) Inventory Plant and equipment (net) Land $73,000 95,000 58,000 95,000 26,000 $347,000 18,000 19,000 25,000 43,000 22,000 122,000 Total assets Accounts payable Notes payable Common stock, $20 par value Other contributed capital Retained earnings 66,000 82,000 100,000 60,000 39,000 $347,000 串18,000 21,000 40,000 24,000 19.000 $122,000 Total equities