Problem 1-6 (LO 3, 4) Cash purchase with goodwill. 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, 2015, is as follows: Sylvester Corporation Balance Sheet December 31, 2015 Current assets: Current liabilities: Notes receivable $ 24,000 Accounts payable $ 45,000 Accounts receivable 56,000 Payroll and benefit-related liabilities 12,500 Inventory 31,000 Other current assets 18,000 Debt maturing in one year 10,000 Total current assets $129,000 Total current liabilities $ 67,500 Investments 65,000 Fixed assets: Other liabilities: Land $ 32,000 Long-term debt $248,000 Building 245,000 Payroll and benefit-related liabilities 156,000 Equipment 387,000 Total fixed assets 664,000 Total other liabilities 404,000 Intangibles: Stockholders’ equity: Goodwill $ 45,000 Common stock $100,000 Patents 23,000 Paid-in capital in excess of par 250,000 Trade names 10,000 Retained earnings 114,500 Total intangibles 78,000 Total equity 464,500 Total assets $936,000 Total liabilities and equity $936,000 An appraiser for Tweeden determined the fair values of Sylvester’s assets and liabilities to be as shown on next page. Assets Liabilities Notes receivable $ 24,000 Accounts payable $ 45,000 Accounts receivable 56,000 Payroll and benefit-related liabilities—current 12,500 Inventory 30,000 Other current assets 15,000 Debt maturing in one year 10,000 Investments 63,000 Land 55,000 Long-term debt 248,000 Building 275,000 Payroll and benefit-related liabilities—long-term 156,000 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. Required 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, 2015. Problem 1-5 (LO 3, 4) Revaluation of assets. Jack Company is a corporation that was organized on July 1, 2015. The June 30, 2020, balance sheet for Jack is as follows: Assets Investments $ 400,500 Accounts receivable $1,250,000 Allowance for doubtful accounts (300,000) 950,000 Inventory 1,500,000 Prepaid insurance 18,000 Land 58,000 Machinery and equipment (net) 1,473,500 Goodwill 100,000 Total assets $4,500,000 Liabilities and Equity Current liabilities $1,475,000 Common stock ($10 par) 1,200,000 Retained earnings 1,825,000 Total liabilities and equity $.