Door Corporation acquires the net assets, exclusive of cash, of Walsh Company on January 1, 2011, at which time Walsh Company’s balance sheet is as follows:Door Corporation feels that the following...

Door Corporation acquires the net assets, exclusive of cash, of Walsh Company on January 1, 2011, at which time Walsh Company’s balance sheet is as follows: Door Corporation feels that the following fair values should be used for Walsh’s book values: Cash (no change) ……………. $ 30,000 Accounts receivable ………….. 60,000 Investment in marketable securities ……..150,000 Land ………………..450,000 Buildings (no change) ………….450,000 Equipment ………………600,000 Accounts payable …………….120,000 Income tax payable (no change)……….190,000 Door issues 20,000 shares of its common stock with a $2 par value and a quoted fair value of $60 per share on January 1, 2011, to Walsh Company to acquire the net assets. Door also agrees that two years from now it will issue additional securities to compensate Walsh shareholders for any decline in value below that on the date of issue. Required View Solution:

Door Corporation acquires the net assets exclusive of cash of