Problem $03-10($LO$2,4)$

The shareholders of Prong Company and Horn Company agreed to a statutory amalgamation under which a share exchange took place. On September $1,$ Year $5,$ Prong Company issued $55,000$ ordinary shares for all of the ordinary shares of Horn Company, after which Horn Company was dissolved. The ordinary shares of Prong Company traded at $$9$ per share on this date. After the amalgamation, Prong Company changed its name to Pronghorn Corporation.

The statements of financial position of the two companies on August $31,$ Year $5,$ were as follows:

The carrying amounts of the net assets of both companies were equal to fair values except for plant and equipment. The fair values of plant and equipment were as follows:$$Prong Company$$690,000$ Horn Company$470,000$

Prong$$s other assets include patent registration costs with a carrying amount of $$44,000.$ An independent appraiser placed a value of $$119,000$ on this patent.

Required:

Prepare the statement of financial position of Pronghorn Corporation immediately after the statutory amalgamation. Options include: Acquisition Cost, Current Assets, Current Liabilities, Goodwill, Long$-$term Debt, Ordinary Shares, Other Assets, Plant, Property, Equipment, and Retained Earnings. The statements of financial position of the two companies on August $31,$ Year $5,$ were as follows: