Following are preacquisition financial balances for PadreCompany and Sol Company as of December 31. Also included are fairvalues for Sol Company accounts.
|Book Values||Book Values||Fair Values|
|Building and equipment (net)||632,500||365,000||429,300|
|Common stockâ$20 par value||(660,000||)|
|Common stockâ$5 par value||(210,000||)|
|Additional paid-in capital||(70,000||)||(90,000||)|
|Retained earnings, 1/1||(557,500||)||(244,000||)|
Note: Parentheses indicate a credit balance.
On December 31, Padre acquires Solâs outstanding stock by paying$127,500 in cash and issuing 16,400 shares of its own common stockwith a fair value of $40 per share. Padre paid legal and accountingfees of $21,500 as well as $6,800 in stock issuance costs.
Determine the value that would be shown in Padreâs consolidatedfinancial statements for each of the accounts listed.
|Buildings and equipment||$1,061,800|
|Additional paid-in capital||$391,200|
|Retained earnings, 1/1||$557,500|
|Retained earnings, 12/31???|
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