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

Pam acquired all of Slest Company’s assets and liabilities on January 1, 20X2, in exchange for its common shares. Pam 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 Pam’s shares were trading at $60 each.

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Item Cash & Receivables Inventory Buildings & Equipment Less: Accumulated Depreciation Total Assets Accounts Payable Notes Payable Common Stock: $8 par value $6 par value Additional Paid-In Capital Retained Earnings Total Liabilities & Equities Pam Corporation Book Value $150,000 300,000 600,000 (250,000) $800,000 $ 75,000 200,000 180,000 140,000 205,000 $800,000 Fair Value $150,000 380,000 430,000 $960,000 $ 75,000 215,000 Slest Company Book Value $ 90,000 70,000 250,000 (80,000) $330,000 $ 50,000 30,000 90,000 55,000 105.000 $330,000 Fair Value $ 90,000 160,000 240,000 $490,000 $50,000 35,000