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On June 30, 2017, Wisconsin, Inc., issued $137,250 in debt and 22,300 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2017, Wisconsin, Inc., issued $137,250 in debt and 22,300 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, 2017, were as follows: $ $ $ Badger (477,000) 293,000 (184,000) (238,000) (184,000) Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (983,000) 673,000 $ (310,000) $ (849,000) (310,000) 92.500 $(1,066,500) $ 170,500 452,000 917,000 745,000 $ 2,284,500 $ (588,000) (360,000) (270,000) (1,066,500) $(2,284,500) $ (422,000) $ 165,000 211,000 398,000 617,000 $ 1,391,000 $ (499,000) (200,000) (270,000) (422,000) $(1,391, 000) Wisconsin also paid $32,000 to a broker for arranging the transaction. In addition, Wisconsin paid $42,600 in stock issuance costs. Badger's equipment was actually worth $728,750, but its patented technology was valued at only $371,900. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Amounts Accounts a. Net income. b. Retained earnings, 1/1/17. c. Patented technology. d. Goodwill. e. Liabilities. f. Common stock. g. Additional paid-in capital
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