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Required: a. Pumpworks issues 800 shares of stock in exchange for all of Seaworthys net assets. Prepare a balance sheet for the combined entity immediately
Required: a. Pumpworks issues 800 shares of stock in exchange for all of Seaworthys net assets. Prepare a 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 Book Value Fair Value Seaworthy Rope Company Book Value Fair Value $ 105, eee 101, eee 101, eee 407,080 (149, eee) $ 565, eee $105,000 151, cee 145, eee 315, eee $ 17,000 39,80 12, eee 121,80 pict ure Balance Sheet Items Assets Cash & Receivables Inventory Land Plant & Equipment Less: Accumulated Depreciation Total Assets Liabilities & Equities Current Liabilities Capital Stock Capital in Excess of Par Value Retained Earnings Total Liabilities & Equities $ 17, eee 27,eee 7, eee 212, eee (64,080) $199,000 pict ure $716,080 $189, eee $ 65, eee $ 28, eee $ 65,000 214, eee 27,080 259, eee $ 565,000 $ 28,00 23,500 12,080 135,500 $199, eee 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, respectivelyStep by Step Solution
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