The Financial Statement Amounts for the Atwood Company and the Franz

question 34

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 goodwill at the date of the acquisition.

• A)$360.
• B)$450.
• C)$460.
• D)$440.
• E)$475.

---

Definitions:

Auditory

Pertaining to the sense of hearing or the organs and structures involved in the process of hearing.

Temporal

Relating to time or denoting the temples of the skull.

Encephalitis

An inflammation of the brain often caused by infection, leading to symptoms such as fever, confusion, and in severe cases, seizures or neurological issues.

Neurilemma

The outermost layer of nerve fibers, essential for the regeneration and functioning of peripheral nerves.