Using the data presented in E1–13, determine the amount Planter Corporation would record as a gain on bargain purchase and prepare the journal entry Planter would record at the time of the exchange if Planter issued bonds with a par value of $580,000 and a fair value of $564,000 in completing the acquisition of Sorden.

Data from Exercises 13

Planter 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 Planter was $608,000. The following balance sheet data were reported by Sorden:

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