On December 31, 2018, Goodwin obtained a loan for
The?nmd?smm?xGommmmmCummny?utmjemmdedDemb??, 2013, priortu
mmmm?mmwhmmmmwmmmfoumcmmm): Goodwin %
Revenu?: $ 2;?00 ‘3 I500
Expenses 1,980 400
Nei income 720 $
$ 200
Retained awnings, 1f] 3 2,400 3 400
Net inecnme T20 200
Dividemls (270) (0]
Retained awnings, 12.81 g m 3 @
Cash s 241] $ 220
Receivablm and imam 1,200 340
Buildings (net) 2,100 I500
Equimem (net) 2,100 1,200
Total asseis 6,240 3
9n 2,360
Liabilities 3 1,500 3 820
Comm stock 1,030 400
Additional paid—in capital 810 540
Re?ned eamings 2,850 I500 Total liabilili? and stockhnldets' equity 3 5,240 $ 2:350
In connection with the business combination, Goodwin paid $25 to a broker for arranging the transaction and $35 in stock issuance costs. At the time of the transaction, Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
9)Assuming that Corr retains a separate corporate existence after this acquisition, at what amount is the investment recorded on Goodwin's books?
A) $1,825. B) $1,625. C) $1,800. D) $1,860. E) $1,540.
10)In this acquisition business combination, what total amount of common stock and additional paid-in capital should Goodwin recognize on its consolidated financial statements?
A) $1,765. B) $1,200. C) $265. D) $1,235. E) $1,165.
11)Compute the consolidated expenses for 2018.
A) $2,005. B) $1,980. C) $2,040. D) $2,380. E) $2,405.
12) Compute the consolidated additional paid-in capital at December 31, 2018.
A) $1,350. B) $1,910. C) $1,875. D) $1,675. E) $810.
-
Rating:
/5
Solution: On December 31, 2018, Goodwin obtained a loan for