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:

Bad News

refers to information that is unwelcome, disappointing, or upsetting, especially when it has significant implications.

Horizontally

Refers to processes or structures extending across a flat or level direction, often used in the context of organizational structures or workflow.

Teammates

Members of the same team, working together towards a common goal or objective.

Vertically

In an up-and-down direction or position, or related to a hierarchy where authority or status increases with higher positions.