G Company is considering the takeover of K Company whereby it will issue 7,200 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 $9.10 per share. The following information has been assembled: Current assets Plant assets (net) Current liabilities Long-term debt Common shares Retained earnings G Company Carrying Amount $ 59,000 72,000 $ 53,500 K Company Carrying Fair Value 82,000 Amount $ 22,000 32,000 Fair Value $ 15,200 50,000 $111,000 $ 54,000 $ 21,200 21,200 $ 6,200 6,200 21,000 25,000 3,700 5,700 55,000 22,000 33,800 22,100 $131,000 $ 54,000