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What amount will be reported for consolidated common stock?

A)  $1,000,000.

B)  $1,080,000.

C)  $1,200,000.

D)  $1,280,000.

E)  $1,360,000.

Answer: C

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: Flynn common stock ($1,000,000) + Par Value of Stock Issued in Connection with the Business Combination ($20 × 10,000 shares = $200,000) = $1,200,000

What do you think?

Written by Homework Lance

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What amount will be reported for consolidated long-term liabilities?

Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be reported for consolidated retained earnings