Problem 4A-1 (LO 2, 3, 7) Vertical worksheet, 100%, cost, fixed asset and merchandise sales. Arther Corporation acquired all of the outstanding $10 par voting common stock of Trent Inc. on January 1, 20X2, in exchange for 50,000 shares of its $10 par voting common stock. On December 31, 20X1, the common stock of Arther had a closing market price of

$15 per share on a national stock exchange. The retained earnings balance of Trent Inc. was

$156,000 on the date of the acquisition. The acquisition was accounted for appropriately as a purchase. Both companies continued to operate as separate business entities maintaining separate accounting records with years ending December 31.

On December 31, 20X4, after year-end adjustments but before the nominal accounts were closed, the companies had the following condensed statements: