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The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the
year ending December 31,2020 , follow. Lakely's buildings were undervalued on its financial
records by $60,000. On December 31, 2020, Jode issued 54,000 new shares of its $10 par value
stock in exchange for all the outstanding shares of Lakely. Jode's shares had a fair value on that
date of $35 per share. Jode paid $34,000 to an investment bank for assisting in the arrangements.
Jode also paid $24,000 in stock issuance costs to effect the acquisition of Lakely. Lakely will
retain its incorporation. Required: Determine consolidated net income for the year ended
December 31, 2020.

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The financial statements for Jode Inc. and Lakely Corp., just prior.pdf

  • 1. The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31,2020 , follow. Lakely's buildings were undervalued on its financial records by $60,000. On December 31, 2020, Jode issued 54,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Lakely. Jode's shares had a fair value on that date of $35 per share. Jode paid $34,000 to an investment bank for assisting in the arrangements. Jode also paid $24,000 in stock issuance costs to effect the acquisition of Lakely. Lakely will retain its incorporation. Required: Determine consolidated net income for the year ended December 31, 2020.