The Financial Statements for Goodwin, Inc

question 13

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) : 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 buildings (net) account at December 31, 2013.

• A) $2,700.
• B) $3,370.
• C) $3,300.
• D) $3,260.
• E) $3,340.

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Definitions:

Bonds Payable

Long-term liabilities representing money a company must pay back to bondholders, typically including principal and interest.

Semiannual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Bond Discount

The contrast in value between what a bond is worth in terms of its face value and the lesser amount it is sold for in the market.

Interest Method

A method used in finance to calculate the interest portion of a payment or the return on an investment over a period of time.