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Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also...

Following are preacquisition financial balances for Padre Company and Sol Company as of December 31. Also included are fair values for Sol Company accounts.

Padre
Company

Sol Company

Book Values Book Values Fair Values
12/31 12/31 12/31
Cash $ 262,500 46,850 $ 46,850
Receivables 251,250 358,000 358,000
Inventory 432,500 305,000 356,400
Land 762,500 163,000 141,500
Building and equipment (net) 637,500 320,000 387,100
Franchise agreements 232,000 268,000 303,000
Accounts payable (314,000 ) (183,000 ) (183,000 )
Accrued expenses (121,000 ) (33,250 ) (33,250 )
Longterm liabilities (927,500 ) (670,000 ) (670,000 )
Common stock—$20 par value (660,000 )
Common stock—$5 par value (210,000 )
Additional paid–in capital (70,000 ) (90,000 )
Retained earnings, 1/1 (440,000 ) (249,000 )
Revenues (1,052,750 ) (360,600 )
Expenses 1,007,000 335,000

Note: Parentheses indicate a credit balance.

On December 31, Padre acquires Sol’s outstanding stock by paying $393,000 in cash and issuing 10,400 shares of its own common stock with a fair value of $40 per share. Padre paid legal and accounting fees of $20,400 as well as $9,200 in stock issuance costs.

Determine the value that would be shown in Padre’s consolidated financial statements for each of the accounts listed.

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