Analyst Program Exercises

Exercise $10-2$ Acquisition

On December $31,2008$ Felton, Inc. purchased all of the outstanding common stock of Hoyt for stock. Felton issued $50,000$ shares of $$8$ par value common stock which had a market price of $$30$ on the date of the transaction.

On the date of the transaction, Hoyt had the following balance sheet:

$\backslash$table$[[$Accounts Receivable,$],[$Inventory$,$$$120,000$