On July 1, 2023, Howe Corporation issues 2,000,000 shares of its common stock for all of...

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On July 1, 2023, Howe Corporation issues 2,000,000 shares of its common stock for all of Essex Corporation's outstanding shares and Essex is dissolved. The fair value of Howe's common stock on that date is $100 per share. The book values and fair values of the accounts for each corporation at March 1, 2019 are as follows: Assets Cash Accounts receivable - net Inventories Other current assets Plant assets Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Common stock ($1 par) Additional paid-in capital Retained earnings Total equities Howe Corporation Essex Corporation Book Value Fair Value Book Value Fair Value $ 25,000,000 $25,000,000 $ 80,000,000 $80,000,000 3,000,000 4,000,000 20,000,000 20,000,000 10,000,000 8,000,000 20,000,000 25,000,000 5,000,000 9,000,000 10,000,000 9,000,000 15,000,000 21,000,000 150,000,000 110,000,000 -6,000,000 -45,000,000 $ 52,000,000 $235,000,000 $14,000,000 $14,000,000 10,000,000 11,500,000 15,000,000 5,000,000 8,000,000 $ 52,000,000 $ 30,000,000 $ 30,000,000 50,000,000 120,000,000 10,000,000 25,000,000 $235,000,000 46,000,000 Required: Prepare both (a) the journal entry to record the business combination and (b) the balance sheet (in good form as discussed in class) of Howe Corporation on July 1, 2023 after the combination. On July 1, 2023, Howe Corporation issues 2,000,000 shares of its common stock for all of Essex Corporation's outstanding shares and Essex is dissolved. The fair value of Howe's common stock on that date is $100 per share. The book values and fair values of the accounts for each corporation at March 1, 2019 are as follows: Assets Cash Accounts receivable - net Inventories Other current assets Plant assets Accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Long-term debt Common stock ($1 par) Additional paid-in capital Retained earnings Total equities Howe Corporation Essex Corporation Book Value Fair Value Book Value Fair Value $ 25,000,000 $25,000,000 $ 80,000,000 $80,000,000 3,000,000 4,000,000 20,000,000 20,000,000 10,000,000 8,000,000 20,000,000 25,000,000 5,000,000 9,000,000 10,000,000 9,000,000 15,000,000 21,000,000 150,000,000 110,000,000 -6,000,000 -45,000,000 $ 52,000,000 $235,000,000 $14,000,000 $14,000,000 10,000,000 11,500,000 15,000,000 5,000,000 8,000,000 $ 52,000,000 $ 30,000,000 $ 30,000,000 50,000,000 120,000,000 10,000,000 25,000,000 $235,000,000 46,000,000 Required: Prepare both (a) the journal entry to record the business combination and (b) the balance sheet (in good form as discussed in class) of Howe Corporation on July 1, 2023 after the combination.