Prepare balance sheet after purchase business combination Comparative balance sheets for Pine and Sain Corporations at December 31, 2005, are as follows (in thousands):
Pine Sain Current assets $130 $ 60 Land 50 100 Buildings—net 300 100 Equipment—net 220 240 Total assets $700 $500 Current liabilities $ 50 $ 60 Capital stock, $10 par 500 200 Additional paid-in capital 50 140 Retained earnings 100 100 Total equities $700 $500 On January 2, 2006, Pine issues 30,000 shares of its stock with a market value of $20 per share for all the outstanding shares of Sain Corporation in a purchase business combination. Sain is dissolved. The recorded book values reflect fair values, except for the buildings of Pine, which have a net realizable value of $400,000, and the current assets of Sain, which have a net realizable value of $100,000.
Pine pays the following expenses in connection with the business combination:
Costs of registering and issuing securities $15,000 Other direct costs of combination 25,000 REQUIRED: Prepare the balance sheet of Pine Corporation immediately after the purchase business combination.