On January 1, 20X1, Palpha Corporation acquired all of Stravo Companys assets and liabilities by issuing shares of its $3 par value stock to the owners of Stravo Company in a business combination. Palpha also made a cash payment to Banker Corporation for stock issue costs. Partial balance sheet data for Palpha and Stravo, before the cash payment and issuance of shares, and a combined balance sheet following the business combination are as follows:

	Palpha Corporation						Stravo Company
	Book Value						Book Value				Fair Value				Combined Entity
Assets
Cash		$	72,000				$	8,000			$	8,000				$	63,000
Accounts Receivable			113,000					20,000				20,000					133,000
Inventory			225,000					98,000				?					330,000
Buildings & Equipment (net)			397,000					223,000				290,000					687,000
Goodwill																	?
Total Assets		$	807,000				$	349,000			$	423,000				$	?
Accounts Payable		$	51,000				$	20,000			$	20,000				$	71,000
Bonds Payable			188,000					111,000				111,000					299,000
Common Stock			95,700					58,000									117,000
Additional Paid-In Capital			223,000					41,000									547,000
Retained Earnings			249,300					119,000									?
Total Liabilities & Equities		$	807,000				$	349,000								$	?

Required:

a. What number of its $5 par value shares did Stravo have outstanding at January 1, 20X1? b. Assuming that all of Stravos shares were issued when the company was started, what was the price per share received at the time of issue? (Round your answer to 2 decimal places.) c. How many shares of Palpha were issued at the date of combination?

d. What amount of cash did Palpha pay as stock issue costs? e. What was the total market value of Palphas shares issued at the date of combination?

f. What was the fair value of Stravos inventory at the date of combination?

g. What was the fair value of Stravos net assets at the date of combination?

h. What amount of goodwill, if any, will be reported in the combined balance sheet following the combination?