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please explain how to calculate the missing parts! The following balance sheets were prepared for Pam Corporation and Slest Company on January 1, 20x2, just
please explain how to calculate the missing parts!
The following balance sheets were prepared for Pam Corporation and Slest Company on January 1, 20x2, just before they entered into a business combination: Pam Corporation Book Value Fair Value Slest Company Book Value Fair Value $ 150,000 300,000 600,000 (250,000) $ 800,000 $150,000 380,000 430,000 $ 90,000 70,000 250,000 (80,000) $330,000 $ 90,000 160,000 240,000 $960,000 $ 490,000 Item Assets Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Accounts Payable Notes Payable Common Stock: $8 par value $6 par value Additional Paid-In Capital Retained Earnings Total Liabilities & Equities $ 75,000 200,000 $ 75,000 215,000 $ 50,000 30,000 $ 50,000 35,000 180,000 140,000 205,000 $ 800,000 90,000 55,000 105,000 $ 330,000 Pam acquired all of Slest Company's assets and liabilities on January 1, 20X2, in exchange for its common shares. Pam issued 8,000 shares of stock to complete the business combination. Required: Prepare a balance sheet of the combined company immediately following the acquisition, assuming Pam's shares were trading at $60 each. (Amounts to be deducted should be indicated with minus sign.) PAM CORPORATION AND SUBSIDIARY Combined Balance Sheet January 1, 20X2 Liabilities and Equities 240,000 Accounts payable 460,000 Notes payable 840,000 Common stock (250,000) Additional paid-in capital 75,000 Retained earnings $ Assets Cash and receivables Inventory Buildings and equipment Accumulated depreciation $ 125,000 235,000 Goodwill Total Assets 1,365,000 Total Liabilities and Equities $ 360,000Step by Step Solution
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