On June 30, 2020, Wisconsin, Inc., issued $315,450 in debt and 18,100 new shares of its...

 

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On June 30, 2020, Wisconsin, Inc., issued $315,450 in debt and 18,100 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, 2020, were as follows (credit balances in parentheses): Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (985,000) 707,000 (278,000) $ $ (801,000) (278,000) 105,000 $ (974,000) $ 42,000 413,000 911,000 739,000 $ 2,105,000 $ (501,000) (360,000) (270,000) (974,000) $(2,105,000) Badger $ (462,000) 293,000 $ (169,000) $ (236,000) (169,000) 0 $ (405,000) $ 79,000 216,000 347,000 664,000 $ 1,306,000 $ (431,000) (200,000) (270,000) (405,000) $(1,306,000) Wisconsin also paid $39,700 to a broker for arranging the transaction. In addition, Wisconsin paid $41,600 in stock issuance costs. Badger's equipment was actually worth $796,750, but its patented technology was valued at only $322,900. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts a. Net income b. Retained earnings, 1/1/20 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock g. Additional paid-in capital Amounts On June 30, 2020, Wisconsin, Inc., issued $315,450 in debt and 18,100 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, 2020, were as follows (credit balances in parentheses): Revenues Expenses Net income Retained earnings, 1/1 Net income Dividends declared Retained earnings, 6/30 Cash Receivables and inventory Patented technology (net) Equipment (net) Total assets Liabilities Common stock Additional paid-in capital Retained earnings Total liabilities and equities Wisconsin $ (985,000) 707,000 (278,000) $ $ (801,000) (278,000) 105,000 $ (974,000) $ 42,000 413,000 911,000 739,000 $ 2,105,000 $ (501,000) (360,000) (270,000) (974,000) $(2,105,000) Badger $ (462,000) 293,000 $ (169,000) $ (236,000) (169,000) 0 $ (405,000) $ 79,000 216,000 347,000 664,000 $ 1,306,000 $ (431,000) (200,000) (270,000) (405,000) $(1,306,000) Wisconsin also paid $39,700 to a broker for arranging the transaction. In addition, Wisconsin paid $41,600 in stock issuance costs. Badger's equipment was actually worth $796,750, but its patented technology was valued at only $322,900. What are the consolidated balances for the following accounts? (Input all amounts as positive values) Accounts a. Net income b. Retained earnings, 1/1/20 c. Patented technology (net) d. Goodwill e. Liabilities f. Common stock g. Additional paid-in capital Amounts

Answer rating: 100% (QA)

ANSWER a Net income 331000 b Retained earnings 1120 1037000 c Patented technolo... View the full answer