On June $30,2023,$ Wisconsin, Incorporated, issued $$300,000$ in debt and $15,000$ new shares of its $$10$ par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $$40$ per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six$-$month period ending June $30,2023,$ were as follows $($credit balances in parentheses$)$:

Items Wisconsin Badger

Revenues $ $(900,000)$ $ $(300,000)$

Expenses $660,000200,000$

Net income $ $(240,000)$ $ $(100,000)$

Retained earnings, $1/1$ $ $(800,000)$ $ $(200,000)$

Net income $(240,000)(100,000)$

Dividends declared $90,0000$

Retained earnings, $6/30$ $ $(950,000)$ $ $(300,000)$

Cash $ $80,000$ $ $110,000$

Receivables and inventory $400,000170,000$

Patented technology $($net$)900,000300,000$

Equipment $($net$)700,000600,000$

Total assets $ $2,080,000$ $ $1,180,000$

Liabilities $ $(500,000)$ $ $(410,000)$

Common stock $(360,000)(200,000)$

Additional paid$-$in capital $(270,000)(270,000)$

Retained earnings $(950,000)(300,000)$

Total liabilities and equities $ $(2,080,000)$ $ $(1,180,000)$

Wisconsin also paid $$30,000$ to a broker for arranging the transaction. In addition, Wisconsin paid $$40,000$ in stock issuance costs. Badger$$s equipment was actually worth $$700,000,$ but its patented technology was valued at only $$280,000.$

Required:

What are the consolidated balances for the following accounts?

Answer rating: 100% (QA)

To compute the consolidated balances we need to perform the following steps 1 Determine the purchase ... View the full answer