[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 $ 105,000 101, eee 101,080 407, eee (149, eee) $ 565, eee $1e5, eee 151, eee 145, eee 315, eee 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 pict ure $ 17, eee 27,eee 7,000 212,080 (64,080) $199,000 $ 17, e80 39, eee 12,080 pict 121, eee ure $189, eee $716, 080 $ 65, eee $ 28,00 $ 65,00 214, eee 27, eee 259, eee $ 565, 080 $ 28,080 23,500 12,eee 135,580 $199,000 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, respectively. 6. 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. 3.300 shares of common. 1 Capital stock Capital in excess of par value Retained earnings S 0 2 Capital stock Capital in excess of par value Retained earnings $ 0 3 Capital stock Capital in excess of par value Retained earnings