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Prior to Being United in a Business Combination, Taunton Inc

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Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures: Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures:   Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks.Assume that Taunton acquired Eubanks on January 1, 2020. Immediately afterwards, what is the reported amount of the consolidated Common Stock? A)  $240,000. B)  $302,000. C)  $304,000. D)  $366,000. E)  $410,500. Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks.Assume that Taunton acquired Eubanks on January 1, 2020. Immediately afterwards, what is the reported amount of the consolidated Common Stock?


Definitions:

Receivables Recognition Irregularities

Irregularities or anomalies in recognizing receivables that may involve premature or improper revenue recognition, affecting the financial statements' accuracy.

Changes in Receivables

This refers to the variations in the amounts owed to a company by its customers over a specific period.

Sales Growth

The increase in sales over a specific period of time, often used as a measure of company performance.

Receivables Growth

A rise in the total money that customers owe a company for products or services provided on credit.

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