A) $1,500.
B) $2,100.
C) $2,320.
D) $2,920.
E) $2,885.
Answer: D
Learning Objective: 02-06a
Learning Objective: 02-07
Topic: Acquisition―Calculate consolidated balances
Difficulty: 2 Medium
Blooms: Apply
AACSB: Knowledge Application
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback: Goodwin’s liabilities plus Corr’s liabilities equal consolidated liabilities
Goodwin’s Liabilities: $1,500 Existing + $600 to fund consideration paid on business consolidation= $2,100
Corr’s Liabilities: $820
Consolidated Liabilities = $2,100 (Goodwin) + $820 (Corr) = $2,920
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