Problem 2-24 (LO 2-4, 2-5, 2-6, 2-7 On June 30, 2015, Wisconsin, Inc., issued S358,600 in debt and 17,500 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2015, were as follows: Wisconsin Badger Revenues $(1,021,000) (411,000) 223,000 Expenses 692,000 (329,000) (188,000) Net income (888,000) (228,000) (329,000) (188,000) 114,750 Retained earnings, 1/1 Net income Dividends declared $(1,102,250) (416,000) Retained earnings, 6/30 Cash 1 42,250 127.000 Receivables and inventory 434,000 267,000 Patented technology (net) 940,000 345.000 787,000 614.000 Equipment (net) Total assets 2,303,250 1,353,000 Liabilities (671,000) (467,000) (200,000) Common stock (360,000) (270,000) (270,000) Additional paid-in capital (1,102,250) (416,000) Retained earnings $(2,303,250) (1,353,000) Total liabilities and equities Note: Parentheses indicate a credit balance