Prepare balance sheet after acquisition
Comparative balance sheets for Pin and San Corporations at December 31, 2010, are as follows (in thousands):
|
Pin |
San |
|
|
Current assets |
$ 520 |
$ 240 |
|
Land |
200 |
400 |
|
Buildings—net |
1,200 |
400 |
|
Equipment—net |
880 |
960 |
|
Total assets |
$2,800 |
$2,000 |
|
Current liabilities |
$ 200 |
$ 240 |
|
Capital stock, $10 par |
2,000 |
800 |
|
Additional paid in capital |
200 |
560 |
|
Retained earnings |
400 |
400 |
|
Total equities |
$2,800 |
$2,000 |
On January 2, 2011, Pin issues 60,000 shares of its stock with a market value of $40 per share for all the outstanding shares of San Corporation in an acquisition. San is dissolved. The recorded book values reflect fair values, except for the buildings of Pin, which have a fair value of $1,600,000, and the current assets of San, which have a fair value of $400,000.
Pin pays the following expenses in connection with the business combination:
|
Costs of registering and issuing securities |
$60,000 |
|
Other direct costs of combination |
100,000 |
REQUIRED: Prepare the balance sheet of Pin Corporation immediately after the acquisition.