Puzzle Corporation acquired 100 percent of the common stock of Solver Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized balance sheet data for the two companies immediately preceding the acquisition are as follows: Puzzle Corporation Solver Corporation?Book ValueFair Value Book ValueFair ValueTotal Assets$1,200,000 $1,500,000 $900,000 $1,300,000 Total Liabilities$800,000 $700,000 $600,000 $750,000 Total Stockholders Equity 400,000 300,000 $1,200,000 $900,000 Required:Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and (3) total stockholders' equity.
What will be an ideal response?
Total assets = $2,550,000 ($1,200,000 + $1,300,000 + $50,000 GW)
Total liabilities = $1,550,000 ($800,000 + $750,000)
Total stockholders' equity = $1,000,000 [$400,000 + ($60 × 10,000 shares)]
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