On June $30,2023,$ Wisconsin, Incorporated, issued $$158,250$ in debt and $19,400$ new shares of its $$10$ par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $$40$ per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six$-$month period ending June $30,2023,$ were as follows $($credit balances in parentheses$)$:

Items Wisconsin Badger

Revenues $ $(1,001,000)$ $ $(362,000)$

Expenses $690,000247,000$

Net income $ $(311,000)$ $ $(115,000)$

Retained earnings, $1/1$ $ $(869,000)$ $ $(204,000)$

Net income $(311,000)(115,000)$

Dividends declared $111,7500$

Retained earnings, $6/30$ $ $(1,068,250)$ $ $(319,000)$

Cash $ $92,250$ $ $114,000$

Receivables and inventory $482,000183,000$

Patented technology $($net$)935,000293,000$

Equipment $($net$)713,000695,000$

Total assets $ $2,222,250$ $ $1,285,000$

Liabilities $ $(524,000)$ $ $(496,000)$

Common stock $(360,000)(200,000)$

Additional paid$-$in capital $(270,000)(270,000)$

Retained earnings $(1,068,250)(319,000)$

Total liabilities and equities $ $(2,222,250)$ $ $(1,285,000)$

Wisconsin also paid $$37,000$ to a broker for arranging the transaction. In addition, Wisconsin paid $$46,600$ in stock issuance costs. Badger$$s equipment was actually worth $$811,250,$ but its patented technology was valued at only $$269,600.$