Problem 4. 126. Points) On January 1,2009, Pelican Corporation enters into a business combination with Seabird Corporati

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Problem 4 126 Points On January 1 2009 Pelican Corporation Enters Into A Business Combination With Seabird Corporati 1 (41.07 KiB) Viewed 96 times

Problem 4. 126. Points) On January 1,2009, Pelican Corporation enters into a business combination with Seabird Corporation in which Seabird is dissolved. Pelican pays $825,000 for Seabird, the consideration consisting of 33,000 shares of Pelican $10 par common stock with a market value of $25 per share. In addition, Pelican pays the following expenses in cash at the time of the merger: Finder's fees $ 35,000 Accounting and legal fees 65,000 Registration and issuance costs of securities 40.000 $140.000 Pelican Seabird Seabird Book Value Book Value Fair Value Cash $ 150 $ 30 Accounts receivable-net 230 50 40 Inventories 520 80 120 Land 400 100 150 Building.net 1,000 200 300 Equipment-net 500 23.00 250 Total assets $12.800 S760 $1890 Accounts payable $ 300 $ 40 $ 40 Notes payable 600 200 150 Common stock, $10 par 800 300 Additional paid-in capital 600 50 Retained earnings 500 170 $ 30 olul liabilities and owners' equity $2.800 $760 Instructions Prepare a balance sheet for Pelican Corporation as of January 2, 2009, immediately after the merger, assuming the merger is treated as an acquisition