6 dotterel corporation paid 200 000 cash for 40 of the voting common stock of swamp 4307735

6 dotterel corporation paid 200 000 cash for 40 of the voting common stock of swamp 4307735

6) Dotterel Corporation paid $200,000 cash for 40% of the voting common stock of Swamp Land Inc. on January 1, 2011. Book value and fair value information for Swamp on this date is as follows:

BookFair

AssetsValuesValues

Cash$60,000$60,000

Accounts receivable120,000120,000

Inventories80,000100,000

Equipment340,000400,000

$ 600,000$ 680,000

Liabilities & Equities

Accounts payable$200,000$200,000

Note payable120,000100,000

Capital stock200,000

Retained earnings  80,000                       

$600,000$300,000

Required:

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