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
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