Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts Padre Company Book Values Sol Compan Book Values Fair Values 12/31 $ 82,850 12/31 $ 82,850 12/31 $138,750 Cash Receivables Inventory Land Building and equipment (net) Franchise agreements Accounts payable Accrued expenses Longterm liabilities Common stock Common stock-$5 par value Additional paid-in capital Retained earnings, 1/1 Revenues Expenses 281,250 622,500 797,500 770,000 256,000 (387,000) (90,000) (982,500) (660,000) 296,000 194,000 203,000 278,000 273,000 (136,000) (48,250) (520,000) 296,000 249,500 178,000 338,500 306,500 (136,000) (48,250) (520,000) -$20 par value (210,000) (90,000) (298,000) (372,600) 348,000 (70,000) (635,000) (1,029,500) 988,000 Note: Parentheses indicate a credit balance