McCoy Has the Following Account Balances as of December 31

question 52

Multiple Choice

McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. The fair value of McCoy's Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value) common stock in exchange for all of the shares of McCoy's common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.What will be the consolidated additional paid-in capital as a result of this acquisition?

• A)$350,000.
• B)$650,000.
• C)$938,000.
• D)$950,000.
• E)$962,000.

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Definitions:

Prosumer Capitalism

A socio-economic system in which consumers are also producers of the content, goods, or services consumed, blurring traditional roles in the market.

Corporate Elite

A small group of powerful and wealthy individuals who control and influence significant aspects of the economy and political systems.

Prosumers

Individuals who both produce and consume goods or services, merging the roles of consumers and producers, especially prevalent in digital and online contexts.

Body-As-Organism

Viewing the body primarily in terms of its biological and physiological functions, often in contrast to its social or symbolic meanings.