Question
On June 30, 2025, W, Inc., issued $444,550 in debt and 15,200 new shares of its $10 par value stock to B Company owners in
On June 30, 2025, W, Inc., issued $444,550 in debt and 15,200 new shares of its $10 par value stock to B Company owners in exchange for all of the outstanding shares of that company. W shares had a fair value of $40 per share. Prior to the combination, the financial statements for W and B for the six-month period ending June 30, 2025, were as follows (credit balances in parentheses):
W | B | |||||||||||
Revenues | $ | (956,000 | ) | $ | (424,000 | ) | ||||||
Expenses | 677,000 | 250,000 | ||||||||||
Net income | $ | (279,000 | ) | $ | (174,000 | ) | ||||||
Retained earnings, 1/1 | $ | (891,000 | ) | $ | (279,000 | ) | ||||||
Net income | (279,000 | ) | (174,000 | ) | ||||||||
Dividends declared | 113,250 | 0 | ||||||||||
Retained earnings, 6/30 | $ | (1,056,750 | ) | $ | (453,000 | ) | ||||||
Cash | $ | 74,750 | $ | 102,000 | ||||||||
Receivables and inventory | 469,000 | 213,000 | ||||||||||
Patented technology (net) | 922,000 | 327,000 | ||||||||||
Equipment (net) | 745,000 | 600,000 | ||||||||||
Total assets | $ | 2,210,750 | $ | 1,242,000 | ||||||||
Liabilities | $ | (524,000 | ) | $ | (319,000 | ) | ||||||
Common stock | (360,000 | ) | (200,000 | ) | ||||||||
Additional paid-in capital | (270,000 | ) | (270,000 | ) | ||||||||
Retained earnings | (1,056,750 | ) | (453,000 | ) | ||||||||
Total liabilities and equities | $ | (2,210,750 | ) | $ | (1,242,000 | ) | ||||||
W also paid $38,700 to a broker for arranging the transaction. In addition, W paid $45,800 in stock issuance costs. B's equipment was actually worth $701,250, but its patented technology was valued at only $303,900.
What are the consolidated balances for the following accounts? (Input as positive values)
net income
retained earnings 1/1/25
patented technology, net
goodwill
liabilities
common stock
additional paid in capital
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