Balance sheet after an acquisition On December 31, Jose SA acquired Carlos SA by issuing 200,000 common shares with a par value of $10.
Balance sheet after an acquisition
On December 31, Jose SA acquired Carlos SA by issuing 200,000 common shares with a par value
of $10. The market value for these common shares was $10,000,000 at the date of acquisition. Below
is the balance sheet and fair value information for Jose SA and Carlos SA immediately before the
acquisition (in thousands)
Jose SA
(Book Value)
Jose SA
(Fair Value)
Carlos SA
(Book Value)
Carlos SA
(Fair Value)
Cash $2,000 $2,000 $1,000 $1,000
Other current assets 13,000 20,000 8,000 12,000
Plant assets 15,000 20,000 10,000 13,000
Current liabilities 5,000 4,000 2,000 4,000
Other liabilities 12,000 12,000 8,000 13,000
Common stock, $10 par 10,000 5,000
Retained earnings 3,000 4,000
REQUIRED : Prepare the balance sheet after the acquisition.
