The following balance sheets were prepared for Adam Corporation and Best Company on January 1, 20X2, just before they entered into a business combination:

Adam acquired all of Best Company€™s assets and liabilities on January 1, 20X2, in exchange for its common shares. Adam issued 8,000 shares of stock to complete the business combination.

Required
Prepare a balance sheet of the combined company immediately following the acquisition, assuming Adam€™s shares were trading at $60each.

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Adam Corporation Best Company Book Value $150,000 300,000 600,000 (250,000) Fair Value Book Value Item Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets $150,000 90,000 70,000 250,000 (80,000) 5960,000 $330,000 $ 75,000 50,000 30,000 Fair Value $ 90,000 160,000 240,000 380,000 430,000 $490,000 $ 75,000 200,000 Accounts Payable 50,000 35,000 215,000 Common Stock: $8 par value 180,000 6 90,000 55,000 105,000 $330,000 Additional Paid-In Capital 140,000 205,000 $800,000 Total Liabilities & Equities