On January 1, 2021, the Moody Company Entered into a Transaction

question 2

Multiple Choice

On January 1, 2021, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and also issued 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows: Note: Parentheses indicate a credit balance.In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60.Compute the amount of consolidated inventories at date of acquisition.

• A) $1,080.
• B) $1,350.
• C) $1,360.
• D) $1,370.
• E) $290.

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Definitions:

Shock

A medical condition characterized by a significant reduction in blood flow, leading to cellular dysfunction and organ failure.

Caller on Hold

Refers to a caller who is temporarily suspended on the telephone line, awaiting assistance or connection to the desired party.

Practice Name

The name under which a professional practice, such as medical, legal, or dental, operates or is known.

Wait Duration

The length of time a patient or individual has to wait before receiving services, attention, or results in various settings.