Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

On December 31, Padre acquires Sol’s 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 Padre and Sol’s consolidated financial statements for each of the accounts listed.
Accounts
Inventory ............ Revenues
Land ...... Additional paid-in capital
Buildings and equipment ...... Expenses
Franchise agreements . Retained earnings, 1/1
Goodwill

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Book Values Book Values Fair Values 400,000 120,000 120,000 inventory Building and equipment (net) ···· Accounts payable Long-term liabilities Common stock-$20 par value Common stock--$5 par value. . . .. . Additional paid-in capital Retained earnings, 1/1