G Company is considering the takeover of K Company whereby it will issue 8,000 common shares for all of the outstanding shares of K Company. K Company will become a wholly owned subsidiary of G Company. Prior to the acquisition, G Company had 15,000 shares outstanding, which were trading at $9.70 per share. The following information has been assembled: Current assets Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings Carrying Amount $ 67,500 79,000 $146,500 G Company K Company Carrying Fair Value Amount Fair Value $ 57,000 89,000 $ 29,000 39,000 $ 18,700 62,000 $ 68,000 $ 21,900 24,500 21,900 28,500 $ 6,900 6,900 4,400 6,900 67,000 29,000 33,100 27,700 $146,500 $ 68,000