On June 30 200X Carl Corporation purchased Lin Company by issuing 50000 shares

On June 30 200X Carl Corporation purchased Lin Company by issuing 50000 shares of stock. Stock has a market value of $15.00 per share. This acquisition is to
be recorded as a statutory merger through asset acquisition. In this type of business combination Carl company acquires all the assets and liabilities of Lin
Company. Lin Company is dissolved and goes out of business. Prepare the entries the purchase and combination on June 30 200X. Following information is shown prior to the merger activity being recorded: Carl Company Assets Liabilities and Capital Cash $ 80000 Current Liabilities $ 80000
Inventories 80000
Plant 300000 Common Stock $5PV 10000
Land 20000 Additional Paid in Capital 190000 Retained Earnings 200000
Total $480000 Total $480000 Lin Company Assets Liabilities and Capital Cash $200000 Current Liabilities $100000
Accounts Receivable 20000 Common Stock $10PV 150000
Plant Assets 530000 Additional Paid in Capital 400000 Retained Earnings 100000
Total $750000 Total $750000
Other information: The Lin Company Plant Assets fair market value is $600000. The out of pocket costs of the merger are: SEC Registration Statement fee $20000
Legal fees for the SEC Registration Statement $15000
Accounting fees for the SEC Registration Statement $ 5000
Finders Fee $ 6000
Legal fees for the merger $ 2000
Accounting fees for the merger $ 4000
1. Prepare and post the entries to record this as a statutory merger. In a statutory merger permanent dissolution of the subsidiary occurs at the combination
date. 2. Prepare an after merger balance sheet.