REFERENCE: Ref.02_08 Flynn Acquires 100 Percent of the Outstanding Voting Shares of Shares

question 65

Multiple Choice

REFERENCE: Ref.02_08
Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1,20X1.To obtain these shares,Flynn pays $400 (in thousands) and issues 10,000 shares of $20 par value common stock on this date.Flynn's stock had a fair value of $36 per share on that date.Flynn also pays $15 (in thousands) to a local investment firm for arranging the transaction.An additional $10 (in thousands) was paid by Flynn in stock issuance costs.
The book values for both Flynn and Macek as of January 1,20X1 follow.The fair value of each of Flynn and Macek accounts is also included.In addition,Macek holds a fully amortized trademark that still retains a $40 (in thousands) value.The figures below are in thousands.Any related question also is in thousands.
SHAPE \* MERGEFORMAT

-What amount will be reported for consolidated long-term liabilities?

• A)$1,480.
• B)$1,440.
• C)$1,180.
• D)$1,100.
• E)$1,520.

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Definitions:

Middle Colonies

A term referring to the British colonies of New York, New Jersey, Pennsylvania, and Delaware in North America, known for their diverse populations, agricultural production, and trade in the 17th and 18th centuries.

Great Awakening

A series of religious revivals in the British American colonies during the 18th century, which emphasized personal faith, emotional experience, and the need for moral reform.

Religious Diversity

The existence of a variety of religious beliefs, practices, and institutions within a given society, reflecting the freedom of belief and pluralism.

Intellectualism

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