Pal/ Sal
Current Assets $260,000/ $120,000
Equipment-net 440,000/ 480,000
Buildings-net 600,000/ 200,000
Land 100,000/ 200,000
Total Assets $1,400,000/ $1,000,000
Current Liabilities 100,000/ 120,000
Common Stock, $5 par 1,000,000/ 400,000
Additional paid-in Capital 100,000/ 280,000
Retained Earnings 200,000/ 200,000
Total Liabilities and Stockholders' equity $1,400,000/ $1,000,000
On January 1, 2014 Pal issued 30,000 of its shares with a market value of $40 per share in exchange for all of Sal's shares, and Sal was dissolved. Pal paid $20,000 to register and issue the new common shares. It cost Pal $50,000 in direct combination costs. Book values equal market values except that Sal's land is worth $250,000.
Required:
List the accounts and amounts that would appear in the Pal's balance sheet after the business combination and the Sal dissolution on January 1, 2014.
