Following are preacquisition financial balances for Padre Company and Sol Company as of December 31....
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Accounting
Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.
Padre Company
Sol Company
Book Values
Book Values
Fair Values
12/31
12/31
12/31
Cash
$
193,250
$
72,900
$
72,900
Receivables
228,000
369,000
369,000
Inventory
602,500
190,000
242,200
Land
765,000
195,000
166,200
Building and equipment (net)
765,000
271,000
340,000
Franchise agreements
224,000
216,000
249,900
Accounts payable
(350,000
)
(138,000
)
(138,000
)
Accrued expenses
(119,000
)
(47,500
)
(47,500
)
Long-term liabilities
(995,000
)
(552,500
)
(552,500
)
Common stock$20 par value
(660,000
)
Common stock$5 par value
(210,000
)
Additional paid-in capital
(70,000
)
(90,000
)
Retained earnings, 1/1
(522,500
)
(251,000
)
Revenues
(1,041,250
)
(352,900
)
Expenses
980,000
328,000
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Sols outstanding stock by paying $108,000 in cash and issuing 17,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $24,300 as well as $10,300 in stock issuance costs.
Determine the value that would be shown in Padres consolidated financial statements for each of the accounts listed.
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