The Financial Statements for Jode Inc

question 23

Essay

The financial statements for Jode Inc. and Lakely Corp., just prior to their combination, for the year ending December 31, 2010, follow. Lakely's buildings were undervalued on its financial records by $60,000. On December 31, 2010, Jode issued 54,000 new shares of its $10 par value stock in exchange for all the outstanding shares of Lakely. Jode's shares had a fair value on that date of $35 per share. Jode paid $34,000 to an investment bank for assisting in the arrangements. Jode also paid $24,000 in stock issuance costs to effect the acquisition of Lakely. Lakely will retain its incorporation.
Determine consolidated Additional paid-in Capital at December 31, 2010.

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Definitions:

Communication

The process of exchanging information, thoughts, messages, or speech, either verbally or non-verbally, between two or more individuals.

Superiors

Individuals in a higher position or rank within an organization, having authority over others in lower positions.

Organic Organizations

Flexible and adaptive organizational structures that are characterized by decentralized decision-making, wide spans of control, and less formal hierarchy.

Network Structure

An organizational layout where groups or individuals work independently but remain connected through a web of relationships.