Earth Sciences homework help
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 $ 400,000 $ 120,000 $ 120,000 Receivables 220,000 300,000 300,000 Inventory 410,000 210,000 260,000 Land 600,000 130,000 110,000 Building and equipment (net) 600,000 270,000 330,000 Franchise agreements 220,000 190,000 220,000 Accounts payable (300,000 ) (120,000 ) (120,000 ) Accrued expenses (90,000 ) (30,000 ) (30,000 ) Long-term liabilities (900,000 ) (510,000 ) (510,000 ) 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 (390,000 ) (240,000 ) Revenues (960,000 ) (330,000 ) Expenses 920,000 310,000 Note: Parentheses indicate a credit balance. On December 31, Padre acquires Sols outstanding stock by paying $360,000 in cash and issuing 10,000 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,000 as well as $5,000 in stock issuance costs. Determine the value that would be shown in Padres consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)