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Exercise 2-7 Price Company issued 8,670 shares of its $20 par value common stock for the net assets of Sims Company in a business combination under which Sims Company will be merged into Price Company. On the date of the combination, Price Company common stock had a fair value of $31 per share. Balance sheets for Price Company and Sims Company immediately prior to the combination were: Current assets Plant and equipment (net) Total Price $433,580 589,950 $1,023,530 Sims $60,600 148,350 $208,950 Liabilities Common stock, $20 par value Other contributed capital Retained earnings Total $275,300 600,900 72,920 74,410 $1,023,530 $53,600 82,600 20,800 51,950 $208,950 (a) If the business combination is treated as a purchase and Sims Company's net assets have a fair value of $206,478, Price Company's balance sheet immediately after the combination will include goodwill of $63,892. $62,292. $69,892. $61,292