Reference no: EM131891036

Problem - Balance sheet after an acquisition

On December 31, Jose SA acquired Carlos SA by issuing 200,000 common shares with a par value of $10. The market value for these common shares was $10,000,000 at the date of acquisition. Below is the balance sheet and fair value information for Jose SA and Carlos SA immediately before the acquisition (in thousands)

Jose SA (Book Value) Jose SA (Fair Value) Carlos SA (Book Value) Carlos SA (Fair Value)

Cash $2,000 $2,000 $1,000 $1,000

Other current assets 13,000 20,000 8,000 12,000

Plant assets 15,000 20,000 10,000 13,000

Current liabilities 5,000 4,000 2,000 4,000

Other liabilities 12,000 12,000 8,000 13,000

Common stock, $10 par 10,000 5,000

Retained earnings 3,000 4,000

REQUIRED: Prepare the balance sheet after the acquisition.