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Tweeden Corporation is contemplating the acquisition of the net assets of Sylvester Corporation in anticipation of expanding its operations.

Tweeden Corporation is contemplating the acquisition of the net assets of Sylvester Corporation in anticipation of expanding its operations. The balance sheet of Sylvester Corporation on December 31, 2011, is as follows:

Current Assets: Current Liabilities:
Notes Receivable $24,000 Accounts Payable $45,000
Accounts Receivable $56,000 Payroll/Benefits-Current $12,500
Inventory $31,000 Debt Maturing in 1 year $10,000
Other current assets $18,000 Other Liabilities:
Investments $65,000 Long-term Debt $248,000
Fixed Assets: Payroll/Benefits-Long Term $156,000
Land $32,000 Stockholders’ Equity:
Building $245,000 Common Stock $100,000
Equipment $387,000 Paid-in capital in $250,000
Intangibles: excess of par
Goodwill $45,000 Retained Earnings $114,000
Patents $23,000 Total L & E $936,000
Trade Names $10,000
Total Assets $936,000

An appraiser for Tweeden determined the fair values of Sylvester’s assets and liabilities to as follows:

Assets Liabilities
Notes Receivable $24,000 Accounts Payable $45,000
Accounts Receivable $56,000 Payroll/Benefits-Current $12,500
Inventory $30,000 Debt Maturing in 1 year $10,000
Other current assets $15,000 Long-term Debt $248,000
Investments $63,000 Payroll/Benefits-LT $156,000
Land $55,000
Building $275,000
Equipment $426,000
Goodwill ----
Patents $20,000
Trade Names $15,000

The agreed upon purchase price is $580,000 in cash. Acquisition costs paid in cash total $20,000. Using the above information, do value analysis and prepare the entry on the books of Tweeden Corporation to acquire the net assets of Sylvester Corporation on December 31, 2011.

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