Question
On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value
On December 31, 2013, Peris Company acquired Shanta Company's outstanding stock by paying $400,000 cash and issuing 10,000 shares of its own $30 par value common stock, when the market price was $32 per share. Peris paid legal and accounting fees amounting to $35,000 in addition to stock issuance costs of $8,000. Shanta is dissolved on the date of the acquisition. Balance sheet information for Peris and Shanta immediately preceding the acquisition is shown below, including fair values for Shanta's assets and liabilities.
Peris Shanta Shanta
Book Value Book Value Fair Value
Cash $490,000 $140,000 $140,000
Accounts Receivable 560,000 280,000 280,000
Inventory 520,000 200,000 260,000
Land 460,000 150,000 140,000
Plant Assets Net 980,000 325,000 355,000
Construction Permits 380,000 170,000 190,000
Accounts Payable (460,000) (140,000) (140,000)
Other accrued expenses (160,000) (45,000) (45,000)
Notes Payable (800,000) (460,000) (460,000)
Common Stock ($30 par) (960,000)
Common Stock ($20 par) (200,000)
Additional P.I.C (192,000) (80,000)
Retained Earnings (818,000) (340,000)
Required: Determine the consolidated balances which Peris would present on their consolidated balance sheet for the following accounts.
NOTE: Round your answer to the nearest dollar and do NOT put any punctuation or decimal in any amount; otherwise, the system will count your answer as a wrong answer. If there is no number that should be put there, please put (0).
Cash.......................................Answer
Inventory................................Answer
Construction Permits.............Answer
Goodwill.................................Answer
Notes Payable........................Answer
Common Stock......................Answer
Additional Paid in Capital.......Answer
Retained Earnings..................Answer
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