Question: On June 30 2015 Wisconsin Inc issued 300 000 in debt

On June 30, 2015, 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, 2015, were as follows:

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.
What are the consolidated balances for the following accounts?
a. Net income.
b. Retained earnings, 1/1/15.
c. Patented technology.
d. Goodwill.
e. Liabilities.
f. Common stock.
g. Additional paid-incapital.

  • CreatedJanuary 08, 2015
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