Padre Company acquired Sol Company on December 31 by paying $242,500 in cash and issuing 15,200 shares of its own stock worth $40 per share. Padre also paid $24,400 in legal and accounting fees and $8,600 in stock issuance costs related to the acquisition. The document provides preacquisition financial balances for Padre and Sol as of December 31 and the fair values for Sol's accounts to determine the values that would be shown in Padre's consolidated financial statements.
Following are preacquisition financial balances for Padre Company and.pdf
1. Following are preacquisition financial balances for Padre Company and Sol Company as of
December 31 . Also included are fair values for Sol Company accounts. Note: Parentheses
indicate a credit balance.
On December 31, Padre acquires Sol's outstanding stock by paying $242,500 in cash and issuing
15,200 shares of its own common stock with a fair value of $40 per share. Padre paid legal and
accounting fees of $24,400 as well as $8,600 in stock issuance costs. Determine the value that
would be shown in Padre's consolidated financial statements for each of the accounts listed.
(Input all amounts as positive values.)
