The Balance Sheets of Palisade Company and Salisbury Corporation Were

question 16

Essay

The balance sheets of Palisade Company and Salisbury Corporation were as follows on December 31, 2010:
On January 1, 2011 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, 2011.