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  3. on july 1, trudata company issues 10,000 shares of

On July 1, TruData Company issues 10,000 shares of its common stock with a $5...

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Accounting

On July 1, TruData Company issues 10,000 shares of its common stock with a $5 par value and a $40 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown along with book values for TruData's accounts as follows.
\table[[,\table[[TruData],[Book Values]],\table[[Webstat],[Book Values]],\table[[Webstat],[Fair Values]]],[Revenues to 71,$(250,000),$(130,000),],[Expenses to 71,170,000,80,000,],[Retained earnings, 11,(130,000),(150,000),],[Cash and receivables,140,000,60,000,60,000],[Inventory,190,000,145,000,175,000],[Patented technology (net),230,000,180,000,200,000],[Land,400,000,200,000,225,000],[Buildings and equipment (net),100,000,75,000,75,000],[Liabilities,(540,000),(360,000),(350,000)
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