Patel Company issued 100,000 shares of $1 par value common stock (market value of $6/share) for the net assets of Seely Company on January 1, 2011, in a statutory merger. Seely Company had the following assets, liabilities, and owners’ equity at that time:

Required:
Prepare the journal entry to record the assets acquired and liabilities assumed. Assume an income tax rate of40%.

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Book Value Tax Basis Fair Value Difference Cash Accounts receivable Inventory (LIFo) Land Plant assets (net) Total assets Allowance for uncollectible accounts Accounts payable Bonds payable Common stock, $1 par value Other contributed capital Retained earnings Total equities 20,000 112,000 82,000 30,000 392,000 $636,000 10,000 54,000 200,000 80,000 132,000 160,000 20,000 112,000 134,000 55,000 463,000 $784,000 串10.000 54,000 180,000 52,000 25,000 71,000 20,000 $636,000