Big Net Company acquire Smallport on 12/31. Use the information below: Exhibit 2.3 Basic Consolidation Information BigNet Company Book Values December 31 Current assets S 1.100.000 Computers and equipment (net) 1,300,000 Capitalized software (net) 500.000 Customer contracts -0- Notes payable (300.000) Net assets $ 2,600,000 Common stock-$10 par value S(1.600.000) Common stock-$5 par value Additional paid-in capital (40,000) Retained earnings. 1/1 (870.000) Dividends declared 110.000 Revenues (1,000,000) Expenses 800.000 Owners' equity 12/31 $(2,600,000) Retained earnings. 12/31 (960,000) Smallport Company Book Values Fair Values December 31 December 31 $ 300,000 $ 300.000 400.000 600.000 100.000 1.200.000 -0- 700.000 (200.000) (250.000) $ 600,000 $2,550,000 S(100,000) (20,000) (370,000) 10,000 (500.000) 380.000 $(600,000) (480,000) Example 2-1: Big Net pays cash of $1,000,000 and issues 20,000 share of its S10 par common stock (FV $100 per share) for the acquisition in which Smallport will cease to exist. Account Debit Credit