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The following balance sheets were prepared for Adam Corporation and Best Company on January 1,...

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Accounting

The following balance sheets were prepared for Adam Corporation and Best Company on January 1, 20X2, just before they entered into a business combination:

Adam CorporationBest Company
ItemBook ValueFair Market ValueBook ValueFair Market Value
Assets
Cash & Receivables$153,000$153,000$95,000$95,000
Inventory301,000397,00083,000165,000
Buildings & Equipment601,000439,000262,000247,000
Less: Accumulated Depreciation(240,000)(70,000)
Total Assets$815,000$989,000$370,000$507,000

Liabilities & Equities Accounts
Accounts Payable$63,000$63,000$33,000$33,000
Notes Payable193,000208,00030,00035,000
Common Stock:
$8 par value179,000
$6 par value84,000
Additional Paid-In Capital124,00035,000
Retained Earnings256,000188,000
Total Liabilities & Equities$815,000$370,000

Adam acquired all of Best Company's assets and liabilities on January 1, 20X2, in exchange for its common shares.

Adam issued 8,700 shares of stock to complete the business combination.

Required:

Prepare a balance sheet of the combined company, immediately following the acquisition, assuming Adam's shares were trading at $60 each.

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