Problem 1-3 (LO 3, 4, 6) Pro forma income after an acquisition. Moon Company is contemplating the acquisition of Yount, Inc., on January 1, 2015. If Moon acquires Yount, it will pay $730,000 in cash to Yount and acquisition costs of $20,000. The January 1, 2015, balance sheet of Yount, Inc., is anticipated to be as follows: Yount, Inc. Pro Forma Balance Sheet January 1, 2015 Assets Liabilities and Equity $100,000 Current liabilities. Cash equivalents Accounts receivable . . . Inventory Depreciable fixed assets... Accumulated depreciation .. . .$ 30,000 165,000 120,000 Long-term liabilities... 50,000 Common stock ($10 par).. . 80,000 200,000 Retained earnings..15,000 (80,000 $390,000 Total liabilities and equity.. $390,000 Fair values agree with book values except for the inventory and the depreciable fixed assets which have fair values of $70,000 and $400,000, respectively Your projections of the combined operations for 2015 are as follows: Combined sales. . . Combined cost of goods sold, including Yount's beginning inventory, at book value, Other expenses not including depreciation of Yount assets .. 25,000