2.99 See Answer

Question: On June 30, 2020, Wisconsin, Inc., issued $


On June 30, 2020, 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, 2020, were as follows (credit balances in parentheses):



On June 30, 2020, Wisconsin, Inc., issued $-1




On June 30, 2020, Wisconsin, Inc., issued $-2

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 its patented technology was valued at only $280,000.
What are the consolidated balances for the following accounts?
a. Net income
b. Retained earnings, 1/1/20
c. Patented technology
d. Goodwill
e. Liabilities
f. Common stock
g. Additional paid-in capital

2.99

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