P1-2 Prepare balance sheet after an acquisitionOn January 2, 2016, Pop Corporation enters into a business combination with Son Corporation inwhich Son is dissolved. Pop pays $1,650,000 for Son, the consideration consisting of 66,000shares of Pop $10 par common stock with a market value of $25 per share. In addition, Pop pays thefollowing expenses in cash at the time of the merger:Finder's feeAccounting and legal feesRegistration and issuance costs of securitiesBalance sheet and fair value information for the two companies on December 31, 2015, immediately beforethe merger, is as follows (in thousands):CashAccounts receivable-netInventoriesLandBuildings-netEquipment-netTotal assetsAccounts payableNote payableCapital stock, $10 parOther paid-in capitalRetained earningsTotal liabilities and owners' equityPop Book Value$3004601,0408002,0001,000$5,600$ 6001,2001,6001,2001,000$5,600$70,000130,00080,000$280,000Son Book Value Son Fair Value$ 60$6010080160240200300400600600500$1,520$1,780$ 80400600100340$1,520$ 80360 RequiredPrepare a balance sheet for Pop Corporation as of January 2, 2016, immediately after the merger,assuming the merger is treated as an acquisition.

The excess consideration paid by the acquirer (purchasor) to the acquiree (sellor) over the net…

Answered: Prepare a balance sheet for Pop…

FINANCIAL ACCOUNTING

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Author:Libby

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Chapter1: Financial Statements And Business Decisions

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Prepare a balance sheet for Pop Corporation as of January 2, 2016, immediately after the merger, assuming the merger is treated as an acquisition.