1. (10 points) North Company issued 24,000 shares of its $20 par value common stock...
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1. (10 points) North Company issued 24,000 shares of its $20 par value common stock for the net assets of Prairie Company in business combination under which Prairie Company will be merged into North Company. Balance sheets for North Company and Prairie Company immediately prior to the combination were as follows: North Prairie BV BV FV Current Assets $1,314,000 $192,000 $270,000 Land 540,000 308,000 626,000 Building and Equipment (net) 1,185,000 100,000 100,000 Total 3,039,000 600,000 996,000 168,000 Liabilities Common Stock, $20 par value Other Contributed Capital Retained Earnings Total $900,000 1,650,000 218,000 271,000 $3,039,000 $150,000 240,000 60,000 150,000 $600,000 Devise a condition where this transaction is in a gain situation
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