Question: The following balance sheets were prepared for Adam Corporation and

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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  • CreatedMay 23, 2014
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