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 & $ 109,000 Receivables $109,000 $ 19,000 $ 19,000 Inventory 107,000 Land 107,000 168,000 29,000 160,000 41,000 9,000 14,000 Plant & 409,000 309,000 Equipment 219,000 123,000 Less: picture picture Accumulated (131,000) (71,000) Depreciation Total Assets$ 601,000 $746,000 $205,000 $197,000 Liabilities & Equities Current $ 77,000 Liabilities Capital 327,000 Stock $ 77,000 $ 28,000 73,500 $ 28,000 Capital in Excess of 22,000 7,000 Par Value Retained 175,000 96,500 Earnings Total Liabilities $ 601,000 & Equities $205,000 Pumpworks has 10,900 shares of its $30 par value shares outstanding on January 1, 20X3, and Seaworthy has 4,900 shares of $15 par value stock outstanding. The market values of the shares are $310 and $70, respectively. b. Prepare the stockholders' equity section of the combined company's balance sheet, assuming Pumpworks acquires all of Seaworthy's net assets by issuing: 1 1,400 shares of common. 2. 2,100 shares of common. 3. 3,000 shares of common. 1 Capital stock Capital in excess of par value Retained earnings 2 Capital stock Capital in excess of par value Retained earnings 3 Capital stock Capital in excess of par value Retained earnings