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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
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 Sol Company Book Values Book Values Fair Values 12/31 12/31 12/31 Cash $ 538,750 $ 88,750 $ 88,750 Receivables 294,000 302,000 302,000 Inventory 412,500 257,000 314,500 Land 620,000 215,000 185,200 Buildings and equipment (net) 807,500 339,000 406,100 Franchise agreements 224,000 194,000 227,300 Accounts payable (383,000 ) (219,000 ) (219,000 ) Accrued expenses (155,000 ) (33,750 ) (33,750 ) Long-term liabilities (1,065,000 ) (552,500 ) (552,500 ) Common stock$20 par value (660,000 ) Common stock$5 par value (210,000 ) Additional paid-in capital (70,000 ) (90,000 ) Retained earnings, 1/1 (510,000 ) (265,000 ) Revenues (1,048,750 ) (347,500 ) Expenses 995,000 322,000 -------------------------------------------------------------------------------- Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sols outstanding stock by paying $155,000 in cash and issuing 16,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $26,500 as well as $11,900 in stock issuance costs. Determine the value that would be shown in Padre and Sols consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.) Accounts Amounts Inventory $ Land $ Buildings and equipment $ Franchise agreements $ Goodwill $ Revenues $ Additional paid-in capital $ Expenses $ Retained earnings, 1/1 $
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