Compute the consideration transferred for this acquisition at December 31, 2018

A)  $   900.

B)  $1,165.

C)  $1,200.

D)  $1,765.

E)  $1,800.

Answer: E

Learning Objective: 02-05

Topic: Acquisition―Calculate consideration transferred

Difficulty: 2 Medium  

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Consideration transferred equals fair value of cash($600) + fair value of Goodwin stock issued ($40 per share × 30 shares) = $600 + $1,200 = $1,800