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Stockholders of Bramble Company, Blue Spruce Company, and Ayayai Company are considering alternative arrangements for a business combination. Balance sheets and the fair values
Stockholders of Bramble Company, Blue Spruce Company, and Ayayai Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Bramble Blue Spruce Ayayai Assets $3,869,460 $7,476,700 $943,440 Liabilities $2,018,810 $2,190,640 $257,810 Common stock, $20 par value 1,997,600 1,808,100 537,880 Other contributed capital -0- 604,570 189,490 Retained earnings (deficit) (146,950) 2,873,390 (41,740) Total equities $3,869,460 $7,476,700 $943,440 Fair values of assets $4,179,660 $9,013,000 $1,302,280 Bramble Company shares have a fair value of $52. 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: Bramble Company acquires all the assets and assumes all the liabilities of Blue Spruce and Ayayai Companies by issuing in exchange 139,990 shares of its common stock to Blue Spruce Company and 40,140 shares of its common stock to Ayayai Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Assets (except goodwill) Goodwill BRAMBLE COMPANY Balance Sheet October 1, 2024 Assets $ Total Assets $ Liabilities and Stockholders' Equity Liabilities Common Stock Other Contributed Capital Retained Earnings CA $ Total Liabilities and Stockholders' Equity $
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