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
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