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.

• A)$1,500.
• B)$2,100.
• C)$2,320.
• D)$2,920.
• E)$2,885.

Recognize the influence of unique events on memory retrievability.

Understand the mechanisms of proactive and retroactive interference in memory.

Understand the misconceptions and limitations of long-term memory.

Recognize the concept and examples of repression and motivated forgetting.

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Definitions:

Validity

The degree to which an idea, conclusion, or measurement is grounded in reality and probably reflects the actual state of affairs accurately.

Repertory Grid

A technique used in personal construct psychology to explore the ways in which individuals construe their experiences and people in their lives.

Constructs

Abstract concepts developed or constructed to understand or interpret the world.

Role Models

Individuals admired for their ways of behaving or achieving something, whom people aspire to emulate.