Stockholders of Flounder Company, Flint Company, and Culver Company are considering alternative arrangements for a business...

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Stockholders of Flounder Company, Flint Company, and Culver Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets Flounder $3,933,520 $2,018,720 2,012,600 (97,800) $3,933,520 $4,179,730 Flint $7,561,600 $2,196,670 1,811,500 601,610 Culver $956,930 $257,730 539,640 189,850 2,951,820 (30,290) $7,561,600 $956,930 $9,017,500 $1,287,280 Flounder Company shares have a fair value of $51. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. Prepare a balance sheet for the business combination. Assume the following: Flounder Company acquires all the assets and assumes all the liabilities of Flint and Culver Companies by issuing in exchange 140,100 shares of its common stock to Flint Company and 40,160 shares of its common stock to Culver Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Assets (except goodwill) Goodwill Total Assets Liabilities Common Stock Retained Earnings FLOUNDER COMPANY Balance Sheet October 1, 2024 Other Contributed Capital Assets Liabilities and Stockholders' Equity $ Total Liabilities and Stockholders' Equity ✓ GA $ $ Stockholders of Flounder Company, Flint Company, and Culver Company are considering alternative arrangements for a business combination. Balance sheets and the fair values of each company's assets on October 1, 2024, were as follows: Assets Liabilities Common stock, $20 par value Other contributed capital Retained earnings (deficit) Total equities Fair values of assets Flounder $3,933,520 $2,018,720 2,012,600 (97,800) $3,933,520 $4,179,730 Flint $7,561,600 $2,196,670 1,811,500 601,610 Culver $956,930 $257,730 539,640 189,850 2,951,820 (30,290) $7,561,600 $956,930 $9,017,500 $1,287,280 Flounder Company shares have a fair value of $51. A fair (market) price is not available for shares of the other companies because they are closely held. Fair values of liabilities equal book values. Prepare a balance sheet for the business combination. Assume the following: Flounder Company acquires all the assets and assumes all the liabilities of Flint and Culver Companies by issuing in exchange 140,100 shares of its common stock to Flint Company and 40,160 shares of its common stock to Culver Company. (List assets in order of liquidity. Enter negative account balance with negative sign preceding the number e.g. -5,125 or parentheses e.g. (5,125).) Assets (except goodwill) Goodwill Total Assets Liabilities Common Stock Retained Earnings FLOUNDER COMPANY Balance Sheet October 1, 2024 Other Contributed Capital Assets Liabilities and Stockholders' Equity $ Total Liabilities and Stockholders' Equity ✓ GA $ $

Answer rating: 100% (QA)

Step 1 of 1 Working Note Assets except goodwillAssets except goodwill393352090175001... View the full answer