The Financial Statement Amounts for the Atwood Company and the Franz

question 67

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 inventory at the date of the acquisition.

• A)$1,650.
• B)$1,810.
• C)$1,230.
• D)$580.
• E)$1,830.

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Definitions:

Wages Increase

An upward adjustment in the amount of compensation workers receive for their labor, influencing purchasing power and cost of living.

Labor Supplied

The total hours that workers are willing to work at a given wage rate, within a specified period.

Social Security

A government program that provides financial assistance to individuals during retirement, disability, or upon the death of a primary wage earner.

Supply of Labor

The total hours that workers wish to work at a given wage rate, influenced by factors like wages, working conditions, and demographics.