On January 1, 20X1, Alpha Corporation acquired all of Bravo Company€™s assets and liabilities by issuing shares of its $3 par value stock to the owners of Bravo Company in a business combination. Alpha also made a cash payment to Banker Corporation for stock issue costs. Partial balance sheet data for Alpha and Bravo, before the cash payment and issuance of shares, and a combined balance sheet following the business combination are as follows:

Required
a. What number of its $5 par value shares did Bravo have outstanding at January 1, 20X1?
b. Assuming that all of Bravo€™s shares were issued when the company was started, what was the price per share received at the time of issue?
c. How many shares of Alpha were issued at the date of combination?
d. What amount of cash did Alpha pay as stock issue costs?
e. What was the total market value of Alpha€™s shares issued at the date of combination?
f. What was the fair value of Bravo€™s inventory at the date of combination?
g. What was the fair value of Bravo€™s net assets at the date of combination?
h. What amount of goodwill, if any, will be reported in the combined balance sheet following thecombination?

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Alpha Corporation Book Value Book Value Far Value Combined Entity Bravo Company Cash Accounts Receivable Inventory Buildings & Equipment (net) Goodwill Total Assets 65,000 15,000 105,000 210,000 400,000 15,000 30,000 5 56,000 135,000 320,000 693,000 30,000 90,000 10,000 293,000 $780,000 345,000 $448,000 $56,000 22,000 22,000 120,000 120,000 Accounts Payable Bonds Payable Common Stock Additional Paid-In Capital Retained Earnings Total Liabilities & Equities 200,000 96,000 234,000 194,000 78,000 320,000 117,000 553,000 70,000 42,000 91,000 $780,000 345,000 $142,000