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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 $ 354,750 $ 56,700 $ 56,700
Receivables 242,250 312,000 312,000
Inventory 482,500 174,000 229,900
Land 720,000 194,000 171,200
Building and equipment (net) 837,500 332,000 395,300
Franchise agreements 242,000 252,000 290,800
Accounts payable (352,000 ) (152,000 ) (152,000 )
Accrued expenses (189,000 ) (54,500 ) (54,500 )
Longterm liabilities (1,132,500 ) (532,500 ) (532,500 )
Common stock$20 par value (660,000 )
Common stock$5 par value (210,000 )
Additional paidin capital (70,000 ) (90,000 )
Retained earnings, 1/1 (422,500 ) (260,000 )
Revenues (1,000,000 ) (354,700 )
Expenses 947,000 333,000

Note: Parentheses indicate a credit balance.

On December 31, Padre acquires Sols outstanding stock by paying $228,000 in cash and issuing 14,500 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,400 as well as $10,000 in stock issuance costs.

Determine the value that would be shown in Padres consolidated financial statements for each of the accounts listed.

Worksheet

Inventory$

Land$

Buildings and equipment $

Franchise agreements $

Goodwill $

Revenues $

Additional paid-in capital $

Expenses $

Retained earnings, 1/1 $

Retained earnings, 12/31 $

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