Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts. Padre Company Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 Cash $ 400,000 $ 120,000 $ 120,000 Receivables 220,000 300,000 300,000 Inventory 410,000 210,000 260,000 Land 600,000 130,000 110,000 Building and equipment (net) 600,000 270,000 330,000 Franchise agreements 220,000 190,000 220,000 Accounts payable (300,000) (120,000) (120,000) Accrued expenses (90,000) (30,000) (30,000) Longterm liabilities (900,000) (510,000) (510,000) Common stock—$20 par value (660,000) Common stock—$5 par value (210,000) Additional paid–in capital (70,000) (90,000) Retained earnings, 1/1 (390,000) (240,000) Revenues (960,000) (330,000) Expenses 920,000 310,000 ________________________________________ Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sol’s outstanding stock by paying $360,000 in cash and issuing 10,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,000 as well as $5,000 in stock issuance costs. Determine the value that would be shown in Padre’s consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

	Padre Company					Sol Company
	Book Values					Book Values					Fair Values
	12/31					12/31					12/31
Cash		$	400,000				$	120,000				$	120,000
Receivables			220,000					300,000					300,000
Inventory			410,000					210,000					260,000
Land			600,000					130,000					110,000
Building and equipment (net)			600,000					270,000					330,000
Franchise agreements			220,000					190,000					220,000
Accounts payable			(300,000)					(120,000)					(120,000)
Accrued expenses			(90,000)					(30,000)					(30,000)
Longterm liabilities			(900,000)					(510,000)					(510,000)
Common stock—$20 par value			(660,000)
Common stock—$5 par value								(210,000)
Additional paid–in capital			(70,000)					(90,000)
Retained earnings, 1/1			(390,000)					(240,000)
Revenues			(960,000)					(330,000)
Expenses			920,000					310,000

Note: Parentheses indicate a credit balance.

On December 31, Padre acquires Sol’s outstanding stock by paying $360,000 in cash and issuing 10,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,000 as well as $5,000 in stock issuance costs.

Determine the value that would be shown in Padre’s consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)

Price: 10 USD

Question Code: 20008