5. Use the following information to answer Questions. Suppose Company Pacquires 80% of the common stock of Company S on December 31, 2008, by paying $120,000 cash to the shareholders of Company S. The two firms' preacquisition balance sheets as of December 31, 2008, and pre-acquisition proforma income statements for the year ending December 31, 2009, follow: Company s Pre-Acquisition Balance Sheets December 31, 2008 Current assets Other assets Total Assets Company P $720,000 480.000 $1,200,000 $240,000 120.000 $360,000 Current liabilities Common stock Retained earnings Total Liabilities & Equity $600.000 420.000 180,000 $1,200,000 $210,000 90.000 180,000 $360,000 Company S Unconsolidated Income Statements December 31, 2009 Revenue Expenses Net income Dividends Company P $900.000 600.000 $300,000 $300.000 240.000 $60.000 $15.000 re-Acquisition Balance Sheets December 31, 2008 Current assets Other assets Total Assets Company P $720,000 480,000 $1,200,000 Companys $240,000 120.000 $360,000 Current liabilities Common stock Retained earnings Total Liabilities & Equity $600,000 420,000 180,000 $1,200,000 $210,000 90,000 60,000 $360,000 Unconsolidated Income Statements December 31, 2009 Revenue Expenses Net income Company P $900.000 600,000 $300,000 Company s $300,000 240,000 $60,000 Dividends $15,000 diately after the acquisition, Company P will report total assets of