Byte Computer Corporation acquired 90 percent of Nofail Software Companys common stock on January 2, 20X3, by

Byte Computer Corporation acquired 90 percent of Nofail Software Company’s common stock on January 2, 20X3, by issuing preferred stock with a par value of $6 per share and a market value of $8.10 per share. A total of 10,000 shares of preferred stock was issued. Balance sheet data for the two companies immediately before the business combination are presented in E3-8.

Required
Prepare a consolidated balance sheet for the companies immediately after Byte obtains ownership of Nofail by issuing the preferredstock.

Transcribed Image Text:

Byte Computer Corporation Nofail Software Company Book Value Fair Value Book Value Fair Value $50,000 120,000 Cash Other Assets Total Debits Current Liabilities Common Stock Retained Earnings Total Credits $200,000 400,000 $600,000 $200,000 400,000 $ 50,000 120,000 $170,000 $100,000 300,000 200,000 $600,000 $80,000 50,000 40,000 $170,000 100,000 80,000