Reference no: EM132653116
The financial statements for CAP Inc. and SAP Company for the year ended December 31, Year 5, follow:
CAP SAP
Revenues $934,000 $334,000
Expenses $677,000 $217,000
Profit $257,000 $117,000
Retained earnings, 1/1/Year 5 $ 817,000 $ 234,000
Profit 257,000 117,000
Dividends paid 107,000 0
Retained earnings, 12/31/Year 5 $ 967,000 $ 351,000
Equipment (net) $ 717,000 $ 617,000
Patented technology (net) 917,000 334,000
Receivables and inventory 417,000 187,000
Cash 97,000 127,000
Total assets $ 2,148,000 $ 1,265,000
Ordinary shares $ 564,000 $ 487,000
Retained earnings 967,000 351,000
Liabilities 617,000 427,000
Total equities and liabilities $2,148,000 $1,265,000
On December 31, Year 5, after the above figures were prepared, CAP issued $317,000 in debt and 11,200 new shares to the owners of SAP to purchase all of the outstanding shares of that company. CAP shares had a fair value of $57 per share.
CAP also paid $38,500 to a broker for arranging the transaction. In addition, CAP paid $57,000 in stock issuance costs. SAP's equipment was actually worth $761,000 but its patented technology was valued at only $287,000.
Required:
Question 1: What are the balances for the following accounts on the Year 5 consolidated financial statements?
(a)Profit (b) Retained earnings, 12/31/Year 5 (c) Equipment (d) Patented technology (e) Goodwill (f) Ordinary shares (g)Liabilities