On June 30, 2020, Wisconsin, Inc., issued $274,800 in debt and 17,700 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) Badger $ (396,000) 289,000 $ (107.000) 5 (218,000) (107,000) 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 earning Total liabilities and equities Wisconsin 5 (994, 000) 212,000 $ (282,000) $ (818,000) (282,000) 90.750 $(1,001,250) $ 86,250 457,000 905,000 260.000 $ 2,208,250 (577,000) (360.000) (270,000) 1,001,250 5(2,200,250) $ (325,000) $ 62.000 161,000 333,00 66,000 $ 1,219,000 $ (424,000) (200,000) (270,000) (325.000) 5(1,219,000) Wisconsin also paid $39,500 to a broker for arranging the transaction. In addition, Wisconsin paid $46.700 in stock issuance costs Badger's equipment was actually worth $813.000, but its patented technology was valued at only $308,200 On June 30, 2020, Wisconsin, Inc., issued $274,800 in debt and 17,700 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) Badger $ (396,000) 289,000 $ (107.000) 5 (218,000) (107,000) 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 earning Total liabilities and equities Wisconsin 5 (994, 000) 212,000 $ (282,000) $ (818,000) (282,000) 90.750 $(1,001,250) $ 86,250 457,000 905,000 260.000 $ 2,208,250 (577,000) (360.000) (270,000) 1,001,250 5(2,200,250) $ (325,000) $ 62.000 161,000 333,00 66,000 $ 1,219,000 $ (424,000) (200,000) (270,000) (325.000) 5(1,219,000) Wisconsin also paid $39,500 to a broker for arranging the transaction. In addition, Wisconsin paid $46.700 in stock issuance costs Badger's equipment was actually worth $813.000, but its patented technology was valued at only $308,200
