5-3 On April 30. Year 6. Powell Corporation issued 30.000 shares of its no-par com- mon stock with a stated value of $5 a share and a current fair value of $20 a share for 8.000 shares of Seaver Company's $10 par common stock. There was no con- tingent consideration; out-of-pocket costs of the business combination, paid by Seaver on behalf of Powell on April 30, Year 6. were as follows: Finder's and legal fees relating to business combination Costs associated with SEC registration statement Total out-of-pocket costs of business combination $40.000 30.000 $70.000 Balance sheets of the constituent companies on April 30, Year 6, prior to the business combination, are shown below: POWELL CORPORATION AND SEAVER COMPANY Separate Balance Sheets April 30. Year 6 Powell Corporation Seaver Company Assets Cash Accounts receivable (net) Inventories S 50,000 $ 150,000 230.000 200,000 400.000 350,000 Plant assets (net) Total assets 1,300,000 560,000 $1,980,000 $1,260,000 Liabilities & Stockholders' Equity Current liabilities $ 310,000 $ 250,000 Long-term debt 800,000 600,000 Common stock, no-par, $5 stated value 400,000 Common stock. $10 par 100,000 Paid-in capital in excess of par or stated value 100,000 360.000 Retained earnings (deficit). 370.000 (50,000) Total liabilities & stockholders' equity $1,980,000 $1.260.000 were the same as their