Compute the consolidated additional paid-in capital at December 31, 2018.

A)  $   810.

B)  $1,350.

C)  $1,675.

D)  $1,910.

E)  $1,875.

Answer: C

Learning Objective: 02-05 

Learning Objective: 02-06a

Learning Objective: 02-06b

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: Goodwin’s APIC total ($810) + Corr’s APIC total

Corr’s APIC total: Excess of FV of shares issued on combination to Corr over par value, ($40 – $10) × 30 shares = $30 × 30 shares = $900) lessStock Issuance Costs ($35) = $900 – $35 = $865

Consolidated APIC = $810 (Goodwin) + $865 (Corr) = $1,675