LO $1-5$

Pout $44$

P$1-40$ Comprehensive Business Combination

Pintime Industries Inc. entered into a business combination agreement with Sydrolized Chemical Corporation $($SCC$)$ to ensure an uninterrupted supply of key raw materials and to realize certain economies from combining the operating processes and the marketing efforts of the two companies. Under the terms of the agreement, Pintime issued $180,000$ shares of its $$1$ par common stock in exchange for all of SCC$\text{'}$s assets and liabilities. The Pintime shares then were distributed to SCC$\text{'}$s shareholders, and SCC was liquidated.

Immediately prior to the combination, SCC$\text{'}$s balance sheet appeared as follows, with fair valuas also indicated:

$\backslash$table$[[,$Book Values,Fair Values$],[$Assets$,,],[$Cash $,+7,$$$28,000,$$$28\mathrm{.}000$