Required:

a. Pumpworks issues 800 shares of stock in exchange for all of Seaworthy's net assets] Prepare balance sheet for the combined entity immediately following the merger.(Amounts to be deducted should be indicated by minus sign.)

Required Information [The following Information applies to the questions displayed below.] Pumpworks Inc. and Seaworthy Rope Company agreed to merge on January 1, 20X3. On the date of the merger agreement, the companies reported the following data: Pumpworks Seaworthy Rope Company Balance Sheet Items Book Value Fair Value Book Value Fair Value Assets Cash & Receivables $ 185,980 $ 105, 980 $ 17, 080 $ 17,980 Inventory 101, 980 151,989 27, 980 39,980 Land 181, 080 145, 980 7,080 12, 980 Plant & Equipment 497, 980 pict 315,980 212, 980 pict 121,980 Less: Accumulated Depreciation (149, 080) ure (64,980) ure Total Assets $ 565,980 $716,980 $ 199, 080 $189,980 Liabilities & Equities Current Liabilities $ 65,980 $ 65,980 $ 28,080 $ 28,080 Capital Stock 214,980 23,580 Capital in Excess of Par Value 27,989 Retained Earnings 259,980 135,580 Total Liabilities & Equities $ 565,980 $199, 080 Pumpworks has 10,700 shares of its $20 par value shares outstanding on January 1, 20X3, and Seaworthy has 4,700 shares of $5 par value stock outstanding. The market values of the shares are $310 and $50, respectively