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On June 30, 2020, Wisconsin, Inc., issued $143,250 in debt and 24,100 new shares of its $10 par value stock to Badger Company owners in
On June 30, 2020, 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, 2020, were as follows (credit balances in parentheses): $ Revenues Expenses Net income $ Badger (450,000) 259,000 (191,000) (274,000) (191,000) 0 $ 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 $ (1,083,000) 746,000 $ (337,000) $ (847,000) (337,000) 110,000 $(1,074,000) $ 147,000 441,000 967,000 705,000 $ 2,260,000 5 (556,000) (360,000) (270,000) (1,074,000) $(2,260,000) $ (465,000) $ 153,000 318,000 320,000 631,000 $ 1,422,000 $ (487,000) (200,000) ( 279,000) (465,000) $(1,422,000) h 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. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts Amounts a. Net income b. Retained earnings, 1/1/20 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock g. Additional paid-in capital
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