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The Financial Statements for Goodwin, Inc On December 31, 2013, Goodwin Issued $600 in Debt and the Year

question 58

Multiple Choice

The financial statements for Goodwin, Inc. and Corr Company for the year ended December 31, 2013, prior to Goodwin's acquisition business combination transaction regarding Corr, follow (in thousands) : $\begin{array}{lrr}&\text { Goodwin } &\text { Corr }\\\text { Revenues } & \$ 2,700 & \$ 600 \\\text { Expenses } & \underline{1.980} & \underline{400} \\\text { Net income } & \$ 720 & \$ 200\\\\\text { Retained earnings } 1 / 1 & \$ 2,400 & \$ 400 \\\text { Net income } & 720 & 200 \\\text { Dividends } & (270) & (0) \\\text { Retained earnings, } 12 / 31&\$2,850&\$600\\\\\text { Cash } & {\$ 240} & \$ 220 \\\text { Receivables and inventory } & 1,200 & 340 \\\text { Buildings (net) } & 2,700 & 600 \\\text { Equipment (net) } & \underline{2,100} & \underline{1,200} \\\quad \text { Total assets } & \${\underline{\underline{6,240}}} & \$ \underline{\underline{2,360}}\\\\\text { Liabilities } & \$ 1,500 & \$ 820 \\\text { Common stock } & 1,080 & 400 \\\text { Additional paid-in capital } & 810 & 540 \\\text { Retained earnings } & 2,850 & 600 \\\quad \text { Total liabilities \& stockholders' equity } & \$ \underline{6,240} & \$ {\underline{6,360}}\end{array}$ On December 31, 2013, Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to acquire all of the outstanding shares of that company. Goodwin shares had a fair value of $40 per share. Goodwin paid $25 to a broker for arranging the transaction. Goodwin paid $35 in stock issuance costs. Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
Compute the consolidated liabilities at December 31, 2013.

Definitions:

MNC Practices

Strategies and operational procedures used by multinational corporations to conduct business across international borders.

Ethical Issues

Matters or situations that involve a conflict between moral imperatives, where choosing one may result in transgressing another.

Government Measures

Policies or actions taken by a government to manage or solve a particular issue, including legislative acts, regulations, and programs.

Planned Obsolescence

A strategy used by manufacturers to intentionally design products with a limited useful life, encouraging consumers to purchase replacements more frequently.