The Financial Statements for Goodwin, Inc

question 114

Multiple Choice

The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 20X1, prior to Goodwin's acquisition 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 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 consideration transferred for this acquisition at December 31, 20X1.

• A) $900.
• B) $1,165.
• C) $1,200.
• D) $1,765.
• E) $1,800.

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Definitions:

Sex Chromosomes

Chromosomes that determine the sex of an organism, with common types being XX for female and XY for male in mammals.

X-linked Allele

A gene located on the X chromosome that can lead to specific traits or diseases depending on its inheritance pattern.

Bar Eye

A genetic mutation in fruit flies that leads to an elongated eye shape, often used in genetics studies.

Heterozygous

Referring to an individual having two different alleles for a particular gene, one inherited from each parent.