Question
On June 30, 2017, Wisconsin, Inc., issued $147,900 in debt and 20,400 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2017, Wisconsin, Inc., issued $147,900 in debt and 20,400 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, 2017, were as follows:
Wisconsin | Badger | |||||||||||
Revenues | $ | (930,000 | ) | $ | (331,000 | ) | ||||||
Expenses | 663,000 | 210,000 | ||||||||||
Net income | $ | (267,000 | ) | $ | (121,000 | ) | ||||||
Retained earnings, 1/1 | $ | (809,000 | ) | $ | (216,000 | ) | ||||||
Net income | (267,000 | ) | (121,000 | ) | ||||||||
Dividends declared | 114,250 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (961,750 | ) | $ | (337,000 | ) | ||||||
Cash | $ | 69,750 | $ | 118,000 | ||||||||
Receivables and inventory | 461,000 | 194,000 | ||||||||||
Patented technology (net) | 911,000 | 321,000 | ||||||||||
Equipment (net) | 720,000 | 650,000 | ||||||||||
Total assets | $ | 2,161,750 | $ | 1,283,000 | ||||||||
Liabilities | $ | (570,000 | ) | $ | (476,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (961,750 | ) | (337,000 | ) | ||||||||
Total liabilities and equities | $ | (2,161,750 | ) | $ | (1,283,000 | ) | ||||||
Wisconsin also paid $32,300 to a broker for arranging the transaction. In addition, Wisconsin paid $44,700 in stock issuance costs. Badgers equipment was actually worth $768,500, but its patented technology was valued at only $300,800.
What are the consolidated balances for the following accounts? (Input all amounts as positive values)
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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