REFERENCE: Ref.02_03 the Financial Statements for Goodwin,Inc. ,And Corr Company for the for the Year

question 34

Multiple Choice

REFERENCE: Ref.02_03
The financial statements for Goodwin,Inc. ,and Corr Company for the year ended December 31,20X1,prior to Goodwin's business combination transaction regarding Corr,follow (in thousands) : On December 31,20X1,Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to purchase 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.
-If the combination is accounted for as a purchase,at what amount is the investment recorded on Goodwin's books?

• A)$1,540.
• B)$1,800.
• C)$1,860.
• D)$1,825.
• E)$1,625.

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Definitions:

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Liquids that contain high concentrations of metals, often found in geological settings where they can deposit valuable ore minerals.

Limestone

A sedimentary rock primarily composed of calcium carbonate (CaCO3), often formed from marine organisms' shells.

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