PROBLEM 2-2 Merger and Consolidation, Goodwill Impairment LO 3 LO6 Stockholders of Acme Company, Baltic Company, and Colt Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2019, were as follows: Acme Baltic Cole Assets $3,900,000 $7,500,000 $ 950,000 Liabilities $2,030,000 $2,200,000 $ 260,000 Common stock, $20 par value 2,000,000 1,800,000 540,000 Other contributed capital 600,000 190,000 Retained earnings (deficit) (130,000) 2,900,000 (40,000) Total equities $3,900,000 $7.500,000 $ 950,000 Fair values of assets $4,200,000 $9,000,000 $1,300,000 Acme Company shares have a fair value of $50. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. Required: A. Prepare a balance sheet for the business combination. Assume the following: Acme Company acquires all the assets and assumes all the liabilities of Baltic and Colt Companies Chapter 2 Accounting for Business Combinations by issuing in exchange 140,000 shares of its common stock to Baltic Company and 40,000 shares of its common stock to Colt Company 2019 as described