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On January 1, 20X1. Palpha Corporation acquired all of Stravo Company's assets and liabilities by Issuing shares of its $3 par value stock to the

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On January 1, 20X1. Palpha Corporation acquired all of Stravo Company's 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. Partal 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 Book Value Stravo Company Book Value Fair Value Combined Entity $ 67,000 112.000 224, eae 383,000 $ 9, eee 20, cep 109,000 219,00 $ 9,000 20, eee 278,000 Assets Cash Accounts Receivable Inventory Buildings & Equipment (net) Goodwill Total Assets Accounts Payable Bonds Payable Coron Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $418,600 $ 21, eee 115,00 $ 58,eee 132,000 335, eee 661, een ? $ ? $ 70, eee 313, eee 115, see 551, cee $786, eee $ 49,00 198,000 94,500 215,000 229,500 $76, ow $357,000 $ 21,000 115,00 53,000 32,000 136,000 $ 357, Dee $ ? Required: 8 What number of its $5 par value shares did Stravo have outstanding at January 1, 20x1? Number of shares Required: a. What number of its $5 par value shares did Stravo have outstanding at January 1, 20X1? Number of shares b. Assuming that all of Stravo's 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.) Price per share c. How many shares of Palpha were issued at the date of combination? Shares issued d What amount of cash did Palpha pay as stock issue costs? Amount of cash e. What was the total market value of Palpha's shares issued at the date of combination? Market value of shares 1. What was the fair value of Stravo's Inventory at the date of combination? Fair value of in g. What was the fair value of Stravo's net assets at the date of combination? Fair value of net assets ok nt ences g. What was the fair value of Stravo's net assets at the date of combination? Fair value of net assets h. What amount of goodwill. If any, will be reported in the combined balance sheet following the combination? Amount of goodwill

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