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Compute the consolidated liabilities at December 31, 2018

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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Written by Homework Lance

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