2. Thorn Corporation acquired 100 percent of the stock of Byrd Company by issuing 10,000 new shares for exchange. The par-value per share is $10 and the market value per share is $120. Summarized balance sheet information for the two companies immediately preceding the acquisition is as follows: Cash and Receivables Inventory Land Buildings and Equipment (net Bond Investments Total Assets Thorn $1,200,000 40,000 120,000 2,460,000 700,000 $4,520,000 Byrd $ 420,000 470,000 100,000 220,000 $1.210.000 Accounts and Notes Payable $ 820,000 $ 220,000 Common Stock 1,040,000 440,000 Additional Paid-in Capital 1,600,000 240,000 Retained Earnings 1,060,000 310,000 Total Liabilities $4,520,000 $1,210,000 &Stockholder's Equities At the time of acquisition, the book values and market values of Byrd's assets were approximately the same except its inventory was worth $500,000 and land was worth $120,000. At that date, Thom owes Byrd $20,000 on account. Required: Compute the balances to be reported in a consolidated balance sheet prepared immediately following the acquisition for: a Cash and Receivables b. Inventory c. Land d. Buildings and Equipment (net) e. Goodwill f. Accounts and Notes Payable Stockholders' Equity Answers: a) Cash and Receivables a. Inventory b. Land 2 c. Buildings and Equipment (net) = d Goodwill e. Accounts and Notes Payable = f. Stockholders' Equity=