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: Acme $3,917,360 $2,031,130 2,003,300 Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets Baltic $7,461,800 $2,213,370 1,796,230 596,570 2,855,630 $7,461,800 $9,043,400 Colt $950,400 $262,170 539,620 189,190 (40,580 ) $950,400 $1,289,640 (117,070) $3,917,360 $4,160,570 Acme Company shares have a fair value of $51. 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. 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 140,570 shares of its common stock to Baltic Company and 40,160 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 e.g. (5,125).) ACME COMPANY Balance Sheet October 1, 2014 Assets Assets (except goodwill) 14,250,400 TGoodwill 11,359,730 | Total Assets 15,610,130 Liabilities and Stockholders' Equity Liabilities 4,506,670 Common Stock 5,595,760 TOther Contributed Capital 5,568,313 Retained Earnings (374,133) Total Liabilities and Stockholders' Equity 15,610,130