#2

Required Information [The following information applies to the questions displayed below] Pumpworks Incorporated and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companles reported the following data: Pumpworks has 10,400 shares of its $20 par value shares outstanding on January 1,203, and Seaworthy has 4,400 shares of $5 par value stack outstanding. The market values of the shares are $320 and $70, respectively. b. Prepare the stockholders' equity sectron of the combined company's balance sheet, assuming Pumpworks acquires all of Seaworthy's net assets by Issuing: 1. 1,500 shares of common. 2. 2,200 shares of common. 3. 3,400 shares of common