1 1 Pot Inc acquired all Seed Inc's outstanding $25 par common stock on December 31, 20X3, in exchange for 40,000 shares of its $25 par common stock, Pot's common stock closed at $56,50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31 On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts 10 Doint Pot Inc. Seed Inc. Book Assets Cash Accounts & Other Receivables Inventories tand Depreciable Asseto (net) Investment in Sted Inc Long-Tern Tnvestments Other Assets Total Assets $ 125,000 2,140,000 2,310,000 650,000 4,575,000 2,660,000 365.000 $19,045,000 5 330,000 835,000 1,345,000 300,000 1,980,000 385,000 54,675,000 Rerences Llabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long Term Debt Common Stock, 525 Par Value Additional Paid In Capital retained Earnings Total Liabilities and stockholders' Equity $ 2,465,000 $ 1,145,000 1,900,000 1,300,000 3,200,000 1,000,000 2,100,000 190.000 6.-80.000 1,240,000 $14,045,000 $4,579,000 Additional Information 1. Pot uses the equity-method of accounting for its investment in Seed 2 on December 31, 20x3 Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $550,000 Seed had no land transactions in 20X4 3. On June 15, 20X4, Seed paid a cash dividend of S4 per share on its common stock 4. On December 10, 20X4, Pot paid a cash dividend totaling $256,000 on its common stock 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was Common Stock Additional Paid In Capital Retained Earnings Pot Inc $2,200,000 340.000 3.166,000 $ 6,026,000 Seed In $ 1,000,000 190,000 320,000 52,010,000 6. The 20x4 net income amounts according to the separate books of Pot and Seed were $890,000 (exclusive of equity in Seed's 1 1 Pot Inc acquired all Seed Inc's outstanding $25 par common stock on December 31, 20X3, in exchange for 40,000 shares of its $25 par common stock, Pot's common stock closed at $56,50 per share on a national stock exchange on December 31, 20X3. Both corporations continued to operate as separate businesses maintaining separate accounting records with years ending December 31 On December 31, 20X4, after year-end adjustments and the closing of nominal accounts, the companies had condensed balance sheet accounts 10 Doint Pot Inc. Seed Inc. Book Assets Cash Accounts & Other Receivables Inventories tand Depreciable Asseto (net) Investment in Sted Inc Long-Tern Tnvestments Other Assets Total Assets $ 125,000 2,140,000 2,310,000 650,000 4,575,000 2,660,000 365.000 $19,045,000 5 330,000 835,000 1,345,000 300,000 1,980,000 385,000 54,675,000 Rerences Llabilities and Stockholders' Equity Accounts Payable and Other Current Liabilities Long Term Debt Common Stock, 525 Par Value Additional Paid In Capital retained Earnings Total Liabilities and stockholders' Equity $ 2,465,000 $ 1,145,000 1,900,000 1,300,000 3,200,000 1,000,000 2,100,000 190.000 6.-80.000 1,240,000 $14,045,000 $4,579,000 Additional Information 1. Pot uses the equity-method of accounting for its investment in Seed 2 on December 31, 20x3 Seed's assets and liabilities had fair values equal to the book balances with the exception of land, which had a fair value of $550,000 Seed had no land transactions in 20X4 3. On June 15, 20X4, Seed paid a cash dividend of S4 per share on its common stock 4. On December 10, 20X4, Pot paid a cash dividend totaling $256,000 on its common stock 5. On December 31, 20X3, immediately before the combination, the stockholders' equity balance was Common Stock Additional Paid In Capital Retained Earnings Pot Inc $2,200,000 340.000 3.166,000 $ 6,026,000 Seed In $ 1,000,000 190,000 320,000 52,010,000 6. The 20x4 net income amounts according to the separate books of Pot and Seed were $890,000 (exclusive of equity in Seed's