The Financial Statement Amounts for the Atwood Company and the Franz

question 48

Multiple Choice

The financial statement amounts for the Atwood Company and the Franz Company as of December 31, 2021, are presented below. Also included are the fair values for Franz Company's net assets (all numbers are in thousands) . Note: Parenthesis indicate a credit balanceAssume an acquisition business combination took place at December 31, 2021. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.Compute consolidated buildings (net) at the date of the acquisition.

• A) $2,450.
• B) $2,340.
• C) $1,800.
• D) $650.
• E) $1,690.

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Definitions:

Direct Material

Raw materials used in the manufacturing process that are directly attributed to the finished product.

Production Cost

The total expenses incurred in the process of producing goods or services, including materials, labor, and overhead costs.

Organization's Objectives

The specific goals set by a business or organization to guide its operations and strategic direction.

Developing

The act of growing, enhancing, or improving something, often applied in contexts such as software development, business strategies, or personal skills.