On January 1, 20X2, Plend Corporation acquired all of Stork Corporation’s assets and liabilities by issuing shares of its common stock. Partial balance sheet data for the companies prior to the business combination and immediately following the combination are as follows:

Required

a. What number of shares did Plend issue to acquire Stork’s assets and liabilities?

b. What was the total market value of the shares issued by Plend?

c. What was the fair value of the inventory held by Stork at the date of combination?

d. What was the fair value of the identifiable net assets held by Stork at the date of combination?

e. What amount of goodwill, if any, will be reported by the combined entity immediately following the combination?

f. What balance in retained earnings will the combined entity report immediately following the combination?
g. If the depreciable assets held by Stork had an average remaining life of 10 years at the date of acquisition, what amount of depreciation expense will be reported on those assets in 20X2?

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Cash Accounts Receivable Inventory Buildings & Equipment (net) Goodwill Total Assets Accounts Payable Bonds Payable Bond Premium Common Stock, $5 par Additional Paid-In Capital Retained Earnings Total Liabilities & Equities Plend Corp. Book Value $ 40,000 60,000 50,000 300,000 $450,000 $32,000 150,000 6.000 100,000 65,000 97,000 $450,000 Stork Corp. Book Value $ 10,000 30,000 35,000 110,000 $185,000 $ 14,000 70,000 40,000 28,000 33,000 $185,000 Combined Entity $ 50,000 BB,000 96,000 430,000 7 7 $ 46,000 220,000 6.000 125,000 247,000 ? $ ?