Compute the consolidated common stock at the date of acquisition

A)  $1,000.

B)  $2,980.

C)  $2,400.

D)  $3,400.

E)  $3,730.

Answer: B

Learning Objective: 02-05 

Learning Objective: 02-06a 

Learning Objective: 02-07

Topic: Acquisition―Calculate consideration transferred

Topic: Acquisition―Calculate consolidated balances

Topic: Consolidation worksheet

Difficulty: 2 Medium

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: Atwood Common Stock Account on Acquisition Date: $1,980

Franz Related Business Combination Common Stock: $20 par value per share × 50 shares = $1,000

Total Common Stock Account: $1,980 + $1,000 = $2,980