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On January 1, 20X2, Plend Corporation acquired all of Stork Corporation's assets and liabilities by issuing shares of its common stock. Partial balance sheet data

On January 1, 20X2, Plend Corporation acquired all of Stork Corporation's assets and liabilities by issuing shares of its common stock. Partial balance sheet data for the companies prior to the business combination and immediately following the combination are as follows:

Plend Corp. Stork Corp.
Book Value Book Value Combined Entity
Assets
Cash $ 40,000 $ 10,000 $ 50,000
Accounts Receivable 60,000 30,000 88,000
Inventory 50,000 35,000 96,000
Buildings & Equipment (net) 300,000 110,000 430,000
Goodwill ?
Total Assets $ 450,000 $ 185,000 $ ?
Liabilities and Equities
Accounts Payable $ 32,000 $ 14,000 $ 46,000
Bonds Payable 150,000 70,000 220,000
Bond Premium 6,000 6,000
Common Stock, $5 par 100,000 40,000 126,000
Additional Paid-In Capital 65,000 28,000 247,000
Retained Earnings 97,000 33,000 ?
Total Liabilities & Equities $ 450,000 $ 185,000 $ ?

Required:

e. What amount of goodwill, if any, will be reported by the combined entity immediately following the combination?

f. What balance in retained earnings will the combined entity report immediately following the combination?

g. If the depreciable assets held by Stork had an average remaining life of 10 years at the date of acquisition, what amount of depreciation expense will be reported on those assets in 20X2?

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