Reference no: EM132617990

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

                           Padre Company                         Sol Company

                            Book Values                          Book Values.                  Fair Values

                           12/31.                                    12/31.                                12/31

Cash             $323,750                               $78,250                   $78,250

Receivables       222,750                            346,000                   346,000

Inventory           510,000                              218,000                 269,900

Land                      622,500                         214,000                   189,500

Building and equipment (net) 845,000                 307,000                375,000

Franchise agreements 296,000                             196,000                 226,300

Accounts payable            (333,000)                     (198,000)              (198,000)

Accrued expenses            (141,000)                        (32,250)            (32,250)

Longterm liabilities            (1,122,500)                    (502,500)           (502,500)

Common stock-$20 par value (660,000) (book values 12/31 1st colunm)

(Common stock-$5 par value (210,000) (book values 12/31 second colunm)

Additional paid-in capital       (70,000)                        (90,000)

Retained earnings, 1/1         (430,000 )                       (299,000)

Revenues                         (1,030,500)                   (389,500)

Expenses                              967,000                      362,000

Note: Parentheses indicate a credit balance.

On December 31, Padre acquires Sol's outstanding stock by paying $405,000 in cash and issuing 10,700 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $22,900 as well as $11,600 in stock issuance costs.

Problem 1: Determine the value that would be shown in Padre's consolidated financial statements for each of the accounts listed. (Input all amounts as positive values.)