A) $930.
B) $820.
C) $800.
D) $835.
E) $815.
Answer: C
Learning Objective: 02-06c
Topic: Journal entry―Investment with no dissolution
Difficulty: 2 Medium
Blooms: Apply
AACSB: Knowledge Application
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback: Total Consideration Paid = Cash and Stock
Cash: $400
Common Stock (Par Value): $1.00 × 40 shares = $40
APIC: Excess of fair value of stock over par value = ($10 – $1)x(40 shares) = $9 × 40 = $360
Total Consideration: $400 + $40 + $360 = $800
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