On June 30, 2017, Wisconsin, Inc., issued $279,150 in debt and 19,200 new shares of...
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On June 30, 2017, Wisconsin, Inc., issued $279,150 in debt and 19,200 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2017, were as follows:
Wisconsin
Badger
Revenues
$
(991,000
)
$
(347,000
)
Expenses
729,000
245,000
Net income
$
(262,000
)
$
(102,000
)
Retained earnings, 1/1
$
(828,000
)
$
(290,000
)
Net income
(262,000
)
(102,000
)
Dividends declared
97,000
0
Retained earnings, 6/30
$
(993,000
)
$
(392,000
)
Cash
$
69,000
$
147,000
Receivables and inventory
454,000
236,000
Patented technology (net)
951,000
305,000
Equipment (net)
705,000
634,000
Total assets
$
2,179,000
$
1,322,000
Liabilities
$
(556,000
)
$
(460,000
)
Common stock
(360,000
)
(200,000
)
Additional paid-in capital
(270,000
)
(270,000
)
Retained earnings
(993,000
)
(392,000
)
Total liabilities and equities
$
(2,179,000
)
$
(1,322,000
)
Wisconsin also paid $36,800 to a broker for arranging the transaction. In addition, Wisconsin paid $46,200 in stock issuance costs. Badgers equipment was actually worth $784,750, but its patented technology was valued at only $277,200.
What are the consolidated balances for the following accounts?
Answer is complete but not entirely correct. Accounts Amounts $ 225,200 $ 828,000 Net income Retained earnings, Patented technology. 1,228,200 Goodwill. Liabilities Common stock. Additional paid-in capital $ 113,000 $ 1,295,150 $ 552,000 $ 799,800 9
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