Stockholders of Acme Company, Baltic Company, and Colt Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each companys assets on October 1, 2014, were as follows:

Acme Company shares have a fair value of $50. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values.

Prepare a balance sheet for the business combination. Assume the following: Acme Company acquires all the assets and assumes all the liabilities of Baltic and Colt Companies by issuing in exchange 140,190 shares of its common stock to Baltic Company and 40,110 shares of its common stock to Colt Company.

Acme Assets $3,886,180 Liabilities $2,037,820 Common stock, $20 par value2,003,300 Other contributed capital -0, Retained earnings (deficit) (154,940 ) Total equities $3,886,180 Fair values of assets $4,174,240 Baltic $7,505,500 $2,209,250 1,807,950 602,270 2,886,030 $7,505,500 $9,044,400 Colt $957,660 $261,400 544,400 189,960 (3 $957,660 $1,294,050