The Financial Statements for Campbell, Inc

question 85

Multiple Choice

The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands) : On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.In connection with the business combination, Campbell paid $25 to a broker for arranging the transaction and $30 in stock issuance costs. At the time of the transaction, Newton's equipment was actually worth $1,450 but its buildings were only valued at $590.What total amount of additional paid-in capital will Campbell recognize from this acquisition?

• A)$1,020.
• B)$1,050.
• C)$1,080.
• D)$1,105.
• E)$1,400.

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Definitions:

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A sociological perspective that interprets society as a structure with interrelated parts designed to meet the biological and social needs of individuals that make up that society.

Talcott Parsons

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