On January 1, 2023, 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:

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 of acquisition.

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Cash Accounts receivable (net) Inventory Plant and equipment (net) Land Total assets Peach Company $ 73,000 95,000 58,000 95,000 26,000 $347,000 Swartz Company $ 13,000 19,000 25,000 43,000 22,000 $122,000