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

question 32

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 cash after recording the acquisition transaction.

• A) $220.
• B) $185.
• C) $200.
• D) $205.
• E) $215.

---

Definitions:

Nurse's Station

A dedicated area within a healthcare facility where nurses and other medical staff perform administrative duties and coordinate patient care.

Terminally Ill Patient

An individual diagnosed with a condition that is expected to lead to death within a relatively short time frame.

Semiprivate Room

A hospital or medical facility room shared by two patients, typically separated by a curtain or partition for a degree of privacy.

Religious Grounds

The basis or reasons related to faith or beliefs in a particular religion.