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 Baltic Colt Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets $3,889,010 $7,467,900 $958,240 $2,011,870 $2,214,750 $258,400 541,960 189,690 2,002,600 1,805,680 605,100 (125,460) 2,842,370 (31,810) $3,889,010 $7,467,900 $958,240 $4,232,870 $9,005,400 $1,306,200 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