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

question 92

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 equipment at date of acquisition.

• A)$480.
• B)$580.
• C)$559.
• D)$570.
• E)$560.

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Definitions:

Prenatal Care

Healthcare that a pregnant woman receives before the birth of her baby, aimed at ensuring a healthy pregnancy and delivery.

Cultural Support

The assistance and encouragement provided by a community or society that shares the same customs, beliefs, and traditions.

Vernix Caseosa

Greasy material that protects the fetal skin from abrasions, chapping, and hardening that can occur from exposure to amniotic fluid.

Fetal Skin

Refers to the skin of a fetus, which undergoes significant development and changes throughout pregnancy.