Using the data presented in E1-13, determine the amount Fortune Corporation would record as a gain on bargain purchase and prepare the journal entry Fortune would record at the time of the exchange if Fortune issued bonds with a par value of $580,000 and a fair value of $564,000 in completing the acquisition of Sorden.
InE1-13

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