Current assets Land and building Machinery Bonds payable Goodwill
Book Value $150,000 $280,000 $400,000 ($300,000) $150,000
Fair Value $300,000 $280,000 $700,000 ($330,000)
The bonds payable will appear on the consolidated balance sheet as:
a. $300,000 less a discount of $30,000
b. $300,000 plus a premium of $30,000
c. An amount more than $330,000 since it is a bargain purchase.