Crown Company Had Common Stock of $360,000 and Retained Earnings

question 113

Multiple Choice

Crown Company had common stock of $360,000 and retained earnings of $510,000. Baker Inc. had common stock of $750,000 and retained earnings of $970,000. On January 1, 2021, Baker issued 32,000 shares of common stock with a $13 par value and a $37 fair value for all of Crown Company's outstanding common stock. This combination was accounted for using the acquisition method. Immediately after the combination, what was the amount of total consolidated net assets?

• A) $2,054,000.
• B) $2,136,000.
• C) $2,590,000.
• D) $2,904,000.
• E) $3,006,000.

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