On June 30, 2020, Wisconsin, Inc., issued $339,900 in debt and 16,300 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, 2020, were as follows (credit balances in parentheses): Wisconsin Badger
Revenues $(1,039,000) $(402,000)
Expenses 710,000 295,000
Net income $(329,000) $(107,000)
Retained earnings, 1/1 $(866,000) $(234,000)
Net income (329,000) (107,000)
Dividends declared 105,750 0
Retained earnings, 6/30 $(1,089,250) $(341,000)
Cash $206,250 $71,000
Receivables and inventory 422,000 240,000
Patented technology (net) 951,000 304,000
Equipment (net) 726,000 647,000
Total assets $2,305,250 $1,262,000
Liabilities $(586,000) $(451,000)
Common stock (360,000) (200,000)
Additional paid-in capital (270,000) (270,000)
Retained earnings (1,089,250) (341,000)
Total liabilities and equities $(2,305,250) $(1,262,000)
Wisconsin also paid $34,700 to a broker for arranging the transaction. In addition, Wisconsin paid $47,500 in stock issuance costs. Badger’s equipment was actually worth $803,000, but its patented technology was valued at only $274,500.
What are the consolidated balances for the following accounts?
Net Income :
Retained earnings, 1/1/15:
Patented technology:
Goodwill:
Liabilities:
Common Stock:
Additional paid-in capital: