The Balance Sheets of Palisade Company and Salisbury Corporation Were

question 33

Essay

The balance sheets of Palisade Company and Salisbury Corporation were as follows on December 31,2013:
$\begin{array}{|l|r|r|} \hline& \text { Palisade } & \text { Salisbury } \\\hline \text { Current Assets } & \$ 260,000 & \$ 120,000 \\\hline \text { Equipment-net } & 440,000 & 480,000 \\\hline \text { Buildings-net } & 600,000 & 200,000 \\\hline \text { Land } & \underline{100,000} & \underline{200,000} \\\hline \text { Total Assets } & \$ \underline{\underline{1,400,000}} & \$ \underline{\underline{1,000,000}} \\\hline \text { Current Liabilities } & 100,000 & 120,000 \\\hline \text { Common Stock, } \$ 5 \text { par } & 1,000,000 & 400,000 \\\hline \text { Additional paid-in Capital } & 100,000 & 280,000 \\\hline \text { Retained Earnings } & \underline{200,000} & 200,000 \\\hline \text { Total Liabilities and } & & \\\text { Stockholders' equity } & \$ 1,400,000 & \$ \underline{1,000,000} \\\hline\end{array}$ On January 1,2014 Palisade issued 30,000 of its shares with a market value of $40 per share in exchange for all of Salisbury's shares,and Salisbury was dissolved.Palisade paid $20,000 to register and issue the new common shares.It cost Palisade $50,000 in direct combination costs.Book values equal market values except that Salisbury's land is worth $250,000.
Required:
Prepare a Palisade balance sheet after the business combination on January 1,2014.

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Definitions:

False Imprisonment

An act of restraining a person against their will in a bounded area without any legal justification.

Justifiably Restrains

Legitimate limitation or control of actions based on legal or moral grounds.

Wrongful Conduct

Actions or behaviors that are illegal or morally incorrect, often resulting in harm or injury to others.

Law of Torts

A body of rights, obligations, and remedies that is applied by courts in civil proceedings to provide relief for persons who have suffered harm from the wrongful acts of others.