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

question 75

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 common stock at date of acquisition.

• A)$370.
• B)$570.
• C)$610.
• D)$330.
• E)$530.

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Definitions:

Overextension

A linguistic error, common in early language development, in which a child applies a word in a broader context than is appropriate.

Underextension

A cognitive error observed in language development, where a child applies a word too narrowly, using it for one object instead of all objects of that category.

Fast Mapping

The process by which children are able to learn the meaning of new words quickly by making logical assumptions after a minimal exposure.

Fast Mapping

The process by which children rapidly learn a new word after a brief encounter.