Problem 2-5 Balance sheets for Salt Company and Pepper Company on December 31, 2013, follow: Salt Pepper ASSETS Cash Receivables Inventories Plant assets Total assets EQUITIES Accounts payable Mortgage payable Common stock, $20 par value Other contributed capital Retained earnings Total equities $87,220 $195,120 240,400 213,070 668,180 1,287,120 $1,006,550 $1,935,710 121,210 129,940 $194,150 $273,308 168,640 932,900 267,520 293,342 $1,006,550 $1,935,710 138,360 344,070 187,550 142,420 Pepper Company tentatively plans to issue 30,550 shares of its $20 par value stock, which has a current market value of $37 per share net of commissions and other issue costs Pepper Company then plans to acquire the assets and assume the liabilities of Salt Company for a cash payment of $734,700 and $272,000 in long-term 8% notes payable Pepper Company's receivables include $59,670 owed by Salt Company. Pepper Company is willing to pay more than the book value of Salt Company assets because plant assets are undervalued by $206,400 and Salt Company has historically earned above-normal profits Prepare a pro forma balance sheet showing the effects of these planned transactions. (If an amount reduces the account balance then enter with negative sign preceding the number e.g.-5,125 or parentheses e.g. (5,125).)