Reference no: EM132563173

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:

Question 1: Prepare the balance sheet after the acquisition