Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 42

The Acquisition Method
On June 30, 2011, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company.Wisconsin shares had a fair value of $40 per share.Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2011, were as follows:
Wisconsin also paid $30,000 to a broker for arranging the transaction.In addition, Wisconsin paid $40,000 in stock issuance costs.Badger's equipment was actually worth $700,000, but itspatented technology was valued at only $280,000.
What are the consolidated balances for the following accounts
a.Net income.
b.Retained earnings, 1/1/11.
c.Patented technology.
d.Goodwill.
e.Liabilities.
f.Common stock.
g.Additional paid-In capital.