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On June 30, 2011, Wisconsin, Inc., issued $300,000 in debt and 15,000 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, 2011, were as follows:

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Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger’s equipment was actually worth $700,000, but its patented technology was valued at only $280,000.


Required

Compute the consolidated balance of the following accounts

A.Net income.

B. Retained earnings, 1/1/11.

C. Patented technology

D. Goodwill.

E. Liabilities.

F. Common stock.

On June 30 2011 Wisconsin Inc Issued 300000 In Debt And 15000 New Shares Of Its 10 Par Value Stock To Badger Company Owners In Exchange For All Of The Outstandi class=

Sagot :

The answer is b hope this helps
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