Leveraged Buyout Managers of Bayco own 500 of its 10,000 outstanding common shares. Draco is formed by the managers of Bayco to take over Bayco in a leveraged buyout. The managers contribute their shares in Bayco, and Draco then borrows $50,000 to purchase the remaining 9,500 outstanding shares of Bayco. Bayco is then merged into Draco. Data relevant to Bayco immediately prior to the leveraged buyout follow: LO4 Book Value Fair Value Current Assets $ 3,000 $ 3,000 Plant Assets ‘ 12,000 25,000 Stockholders’ Equity $15,000 $28,000 Required:
Complete the following schedule showing the values to be reported in Draco’s balance sheet immediately after the leveraged buyout.
Current Assets Plant Assets Goodwill Debt Stockholders’ Equity