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Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December...

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Accounting

Prepare balance sheet after acquisition Comparative balance sheets for Pop and Son Corporations at December 31, 2015, are as follows (in thousands): Pop Son Current assets 2080 960 Land 800 1600 Buildings 4800 1600 equipment 3520 3840 total assets 11200 8000 Current liabilities 800 960 Capital stock, $10 par 8000 3200 Additional paid-in capital 800 2240 Retained earnings 1600 1600 Total equities $11,200 $8,000 On January 2, 2016, Pop issues 240,000 shares of its stock with a market value of $40 per share for all the outstanding shares of Son Corporation in an acquisition. Son is dissolved. The recorded book values reflect fair values, except for the buildings of Pop, which have a fair value of $6,400,000, and the current assets of Son, which have a fair value of $1,600,000. Pop pays the following expenses in connection with the business combination: Costs of registering and issuing securities Other direct costs of combination $240,000 $400,000 reQUIreD: Prepare the balance sheet of Pop Corporation immediately after the acquisition

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