Compute consolidated expenses immediately following the acquisition

A)  $2,735.

B)  $2,760.

C)  $2,770.

D)  $2,785.

E)  $3,380.

Answer: C 

Learning Objective: 02-05 

Learning Objective: 02-06a

Learning Objective: 02-06b

Learning Objective: 02-07

Topic: Costs of combination

Topic: Acquisition―Calculate consolidated balances

Topic: Consolidation worksheet

Difficulty: 2 Medium

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Atwood’s Total Expenses = Balance Sheet Expenses + Transaction Expenses = $2,760 + $10 = $2,770