Using this information, do the value analysis, and prepare the entry to record the acquisition of the net assets of Heinrich Company on the books of P&F International

Problem 1-8 (10 3, 4) Cash acquisition with a gain. Heinrich Company, owned by Elennor and Al Heinrich, has been experiencing financial difficulty for the past several years. Both Elennor and Al have not been in good health and have decided to find a buyer. P&F Inter- national, after reviewing the financial statements for the previous three years, has decided to make an offer of $150,000 for the net assets of Heinrich Company on January 1, 2016. The balance sheet as of this date is as follows: Heinrich Company Balance Sheet January 1, 2016 Current assets: Current liabilities: Accounts receivable . $ 87,000 Accounts payable $ 56,000 Inventory . . . 36,000 Accrued liabilities . .. 14,000 Other current assets . . .. 14,000 Total current assets. . . . $137,000 Total current liabilities . . . . . $ 70,000 Fixed assets: Other liabilities: Equipment . ... $105,000 Notes payable . . . ... $ 30,000 Vehicles . .. . 69,000 Total fixed assets . . . . $174,000 Total liabilities ..... $ 100,000 Intangibles: Stockholders' equity: Mailing lists . ... $ 4,000 Common stock . . . $ 60,000 Paid-in capital in excess of par . . . 100,000 Retained earnings . . .. 55,000 Total equity . .... $215,000 Total assets ....... $315,000 . . . . . $315,000 Total liabilities and equity . ..... In reviewing the above balance sheet, P&F's appraiser felt the liabilities were stated at their fair values. He placed the following fair values on the assets of the company. Heinrich Company Fair Values January 1, 2016 Current assets: Accounts receivable $ 90,000 Inventory . . . 30,000 Other current assets . . . .. 8,000 Total current assets . . . . . . . . . $128,000 Fixed assets: Equipment . . . $ 80,000 Vehicles . 50,000 Total fixed assets . $130,000 Intangibles: Mailing list . . ... $ 10,000 Total assets. . .. . $268,000