On June 30, 2023, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10
Question:
On June 30, 2023, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2023, were as follows (credit balances in parentheses):
Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger’s equipment was actually worth $700,000, but its patented technology was valued at only $280,000.What are the consolidated balances for the following accounts?a. Net incomeb. Retained earnings, 1/1/23c. Patented technologyd. Goodwille. Liabilitiesf. Common stockg. Additional paid-in capital
Step by Step Answer:
Fundamentals Of Advanced Accounting
ISBN: 9781266268533
9th International Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik