Crown Company Had Common Stock of $360,000 and Retained Earnings

question 113

Multiple Choice

Crown Company had common stock of $360,000 and retained earnings of $510,000. Baker Inc. had common stock of $750,000 and retained earnings of $970,000. On January 1, 2021, Baker issued 32,000 shares of common stock with a $13 par value and a $37 fair value for all of Crown Company's outstanding common stock. This combination was accounted for using the acquisition method. Immediately after the combination, what was the amount of total consolidated net assets?

• A) $2,054,000.
• B) $2,136,000.
• C) $2,590,000.
• D) $2,904,000.
• E) $3,006,000.

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Definitions:

Grade Point Average

An average score that reflects the overall academic performance of a student, calculated by dividing the total amount of grade points earned by the total number of credit hours attempted.

Parents' Expectations

The hopes or demands that parents have regarding their children's behavior, achievements, and paths in life.

Industrial/Organizational

A field of psychology that studies human behavior in work settings, focusing on improving employee performance and wellbeing.

Developmental

Pertaining to the process of growth or development, often in the context of physical, psychological, or emotional change over time.