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On June 30 2015 Wisconsin Inc issued $300000 in debt and 15000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company

On June 30, 2015, Wisconsin, Inc., issued $300,000 in debt and 15,000 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, 2015, were as follows:

Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger’s equipment was actually worth $700,000, but its patented technology was valued at only $280,000. What are the consolidated balances for the following accounts?

a. Net income.

b. Retained earnings, 1/1/15.

c. Patented technology.

d. Goodwill.

e. Liabilities.

f. Common stock.

g. Additional paid-in capital.

Jul 23 2020 View more View Less

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