On June 30, 2017, Wisconsin, Inc., issued $143,250 in debt and 24,100 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 Wisconsin $ (1,083,000) Badger S (450,000) $ (191,000) (274,000) Revenues Expenses 746,000 259,000 $ (337,000) $ (847,000) Net income Retained earnings, 1/1 Net income Dividends declared (337,000) 110,000 (191,000) $(1,074,000) $ (465,000) Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) 147,000 441,000 967,000 705,000 s 2,260,000 $ (556,000) $ 153,000 318,000 320,000 631,000 1,422,000 Total assets Liabilities Common stock Additional paid-in capital Retained earnings $ (487,000) (200,000) (270,000) (465,000) (1,422,000) (360,000) (270,000) 1,074,000 (2,260,000) Total liabilities and equities Wisconsin also paid $35,500 to a broker for arranging the transaction. In addition, Wisconsin paid $46,000 in stock issuance costs Badger's equipment was actually worth $771,250, but its patented technology was valued at only $292,800