12. Following are preacquisition financial balances for Parrot Company and Sun Company as of December 31. Also included are fair values for Sun Company accounts. Parrot Company Book Values 12/31 $290,000 220,000 410,000 600,000 600,000 220,000 (190,000) (90,000) (900,000) (660,000) Sun Company Book Values 12/31 120,000 300,000 210,000 130,000 270,000 190,000 (120,000) (30,000) (510,000) Fair Values 12/31 120,000 300,000 260,000 110,000 330,000 220,000 (120,000) (30,000) (510,000) Cash Land Building and equipment (net). Common stock-$20 par value Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 (70,000) (390,000) (960,000) 920,000 (210,000) (90,000) (240,000) (330,000) 310,000 Expenses . . . Note: Parentheses indicate a credit balance. On December 31, Parrot acquires Sun's outstanding stock by paying $360,000 in cash and issuing 10,000 shares of its own common stock with a value of $40 per share. Parrot paid legal and account- ing fees of $20,000 as well as $5,000 in stock issuance costs