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Compute the amount of consolidated additional paid-in capital at date of acquisition

A)  $1,080.

B)  $1,420.

C)  $1,065.

D)  $1,425.

E)  $1,440.

Answer: D

Learning Objective: 02-05 

Learning Objective: 02-06b

Learning Objective: 02-06c 

Learning Objective: 02-07

Topic: Acquisition―Calculate consideration transferred

Topic: Costs of combination

Topic: Acquisition―Calculate consolidated balances

Difficulty: 3 Hard  

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback:

Moody’s APIC on Acquisition Date: $1,080

APIC Adjustments Related to Osario Business Combination: Excess of Fair Value Over Par Value ($9.00 per sharex 40 shares = $360) +Stock Issuance Costs ($15) = $360 + $15 = $375

Combined APIC = $1,080 + $375 = $1,425

What do you think?

Written by Homework Lance

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