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Palm Corporation and Staple Company have announced terms of an exchange agreement under which Palm will issue 8,200 shares of its $13 par value common
Palm Corporation and Staple Company have announced terms of an exchange agreement under which Palm will issue 8,200 shares of its $13 par value common stock to acquire all of Staple Company's assets. Palm shares currently are trading at $54, and Staple $8 par value shares are trading at $21 each. Historical cost and fair value balance sheet data on January 1, 20X2, are as follows: Balance Sheet Item Palm Corporation Staple Company Fair Book Value Fair Value Book Value Value Assets Cash & Receivables Land Buildings & Equipment (net) Total Assets $156,000 115,000 $156,000 186,000 302,000 409,000 $ 57,000 $ 57,000 52,000 84,000 172,000 213,000 $573,000 $751,000 $281,000 $354,000 Equities Common Stock $197,000 $ 99,000 Additional Paid-In Capital 18,000 Retained Earnings 358,000 Total Equities $573,000 8,600 173,400 $281,000 Required: What amount will be reported immediately following the business combination for each of the following items in the combined company's balance sheet? a. Common Stock- b. Cash and Receivables c. Land d. Buildings and Equipment (net)) e Goodwill f. Additional paid-In Capital 9. Retained Earnings Amounts
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