On June 30, 2017, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2017, were as follows:   Wisconsin Badger Revenues $ (900,000) $ (300,000) Expenses    660,000        200,000   Net income $   (240,000) $     (100,000) Retained earnings, 1/1 $ (800,000) $     (200,000) Net income  (240,000)    (100,000) Dividends declared    90,000           –0–   Retained earnings, 6/30 $   (950,000) $     (300,000) Cash $      80,000   $      110,000   page 81 Receivables and inventory   400,000   170,000 Patented technology (net)   900,000   300,000 Equipment (net)     700,000        600,000   Total assets $ 2,080,000   $  1,180,000   Liabilities $  (500,000) $     (410,000) Common stock   (360,000)   (200,000) Additional paid-in capital   (270,000)   (270,000) Retained earnings     (950,000)     (300,000) Total liabilities and equities $ (2,080,000) $ (1,180,000) Wisconsin also paid $30,000 to a broker for arranging the transaction. In addition, Wisconsin paid $40,000 in stock issuance costs. Badger’s equipment was actually worth $700,000, but its patented technology was valued at only $280,000. What are the consolidated balances for the following accounts? Net income. Retained earnings, 1/1/17. Patented technology

On June 1, 2023, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 400,000 shares of stock for cash. All 1,200,000 shares were outstanding on December 31, 2025. Lancaster Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 40 shares of common at any interest date. None of the bonds have been converted to date. Lancaster Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,540,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. 2. Basic earnings per share N Diluted earnings per share 1. Basic earnings per…

On June 1, 2018, Indigo Company and Sweet Company merged to form Pharoah Inc. A total of 870,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis.On April 1, 2020, the company issued an additional 543,000 shares of stock for cash. All 1,413,000 shares were outstanding on December 31, 2020.Pharoah Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2020. Each $1,000 bond converts to 38 shares of common at any interest date. None of the bonds have been converted to date.Pharoah Inc. is preparing its annual report for the fiscal year ending December 31, 2020. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,613,000. (The tax rate is 20%.)Determine the following for 2020. a) - Basic Earnings per share - Diluted Earnings per share b) the earnings used to calculate: - Basic Earnings per share - Diluted Earnings per share

On June 1, 2023, Novak Company and Splish Company merged to form Blossom Inc. A total of 877,000 shares were issued to complete the merger. The new corporation reports on a calendar-year basis. On April 1, 2025, the company issued an additional 652,000 shares of stock for cash. All 1,529,000 shares were outstanding on December 31, 2025. Blossom Inc. also issued $600,000 of 20-year, 8% convertible bonds at par on July 1, 2025. Each $1,000 bond converts to 44 shares of common at any interest date. None of the bonds have been converted to date. Blossom Inc. is preparing its annual report for the fiscal year ending December 31, 2025. The annual report will show earnings per share figures based upon a reported after-tax net income of $1,444,000. (The tax rate is 20%.) Determine the following for 2025. a. The number of shares to be used for calculating: (Round answers to O decimal places, e.g. 2,500.) 1. 2. 1. Basic earnings per share 2. Diluted earnings per share Basic earnings per share b.…