Balances Reported Following Combination
Palm Corporation and Staple Company have announced terms of an exchange agreement underwhich Palm will issue 8,000 shares of its $10 par value common stock to acquire all of Staple Company’s assets. Palm shares currently are trading at $50, and Staple $5 par value shares are tradingat $18 each. Historical Cost and fair value balance sheet data on January 1, 20X2, are as follows;
Required
What amount will be reported immediately following the business combination for each of the following items in the combined balance sheet?
a. Common Stock.
b. Cash and Receivables.
c. Land.
d. Buildings and Equipment (net).
e.
f. Additional Paid-In Capital.
g.
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