Problem 2-2 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, 2014, were as follows: Baltic Colt $3,928,590 $7,442,100 $950,860 Assets Liabilities $2,036,920 $2,205,290 $262,520 Common stock, $20 par value other contributed capital Retained earnings (deficit) 1,985,300 1,812,120 538,960 189,950 -0- 599,440 (93,630 2,825,250 (40,570) Total equities $3,928,590 $7,442,100 $950,860 Fair values of assets $4,209,770 $9,066,300 $1,302,590 Acme Company shares have a fair value of $52. 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. (a) Your answer is partially correct. Try again. 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 by issuing in exchange 139,600 shares of its common stock to Baltic Company and 40,150 shares of its common stock to Colt Company. (List assets in order of liquidity Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses ACME COMPANY Balance Sheet October 1, 2014 Assets Assets (except goodwill) 14154000 Goodwill 1665424 15819424 Total Assets Liabilities and Stockholders' Equity Liabilities 4504730 Common Stock 5609540 Other Contributed Capital 5798784 Retained Earnings -93630 15819424 Total Liabilities and Stockholders' Equity x