The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: C4P S4P Revenues $ 928.000 $ 328,000 Expenses 674,000 214.000 Profit $254.000 $ 114.000 Retained earnings. 1/1/Year 5 $814,000 $ 228.000 Profit 254.000 114.000 Dividends paid 104.000 Retained earnings. 12/31/Year 5 S964.000 $ 342.000 Equipment (net) $714.000 $ 614,000 914.000 328.000 Patented technology (net) Receivables and inventory 400.000 184.000 Cash 94.000 124.000 Total assets $2.122.000 $1.250.000 Ordinary shares $544,000 $ 484.000 342.000 424.000 Retained earnings 964.000 Liabilities 614.000 Total equities and liabilities $2.122.000 $1.250.000 On December 31, Year 5, after the above figures were prepared, CAP issued $314,000 in debt and 12,400 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $54 per share. CAP also paid $ 37,000 to a broker for arranging the transaction. In addition, CAP paid $54.000 in stock issuance costs. SAP's Page 148 equipment was actually worth $752,000 but its patented technology was valued at only $ 284,000 Required What are the balances for the following accounts on the Year 5 consolidated financial statements? (a) Profit (b) Retained earnings, 12/31/Year 5 (c) Equipment (d) Patented technology (e) Goodwill (f) Ordinary shares (3) Liabilities The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow: C4P S4P Revenues $ 928.000 $ 328,000 Expenses 674,000 214.000 Profit $254.000 $ 114.000 Retained earnings. 1/1/Year 5 $814,000 $ 228.000 Profit 254.000 114.000 Dividends paid 104.000 Retained earnings. 12/31/Year 5 S964.000 $ 342.000 Equipment (net) $714.000 $ 614,000 914.000 328.000 Patented technology (net) Receivables and inventory 400.000 184.000 Cash 94.000 124.000 Total assets $2.122.000 $1.250.000 Ordinary shares $544,000 $ 484.000 342.000 424.000 Retained earnings 964.000 Liabilities 614.000 Total equities and liabilities $2.122.000 $1.250.000 On December 31, Year 5, after the above figures were prepared, CAP issued $314,000 in debt and 12,400 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $54 per share. CAP also paid $ 37,000 to a broker for arranging the transaction. In addition, CAP paid $54.000 in stock issuance costs. SAP's Page 148 equipment was actually worth $752,000 but its patented technology was valued at only $ 284,000 Required What are the balances for the following accounts on the Year 5 consolidated financial statements? (a) Profit (b) Retained earnings, 12/31/Year 5 (c) Equipment (d) Patented technology (e) Goodwill (f) Ordinary shares (3) Liabilities
