The Financial Statements for Goodwin, Inc

question 105

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 consolidated common stock account at December 31, 20X1.

• A) $1,080.
• B) $1,480.
• C) $1,380.
• D) $2,280.
• E) $2,680.

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Definitions:

Borrowing

The act of obtaining funds from another party with the promise of repayment at a later date, often with interest.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests.

Financial Management

The strategic planning, controlling, organizing, and monitoring financial resources to achieve an organization's goals and objectives.

Current Value

The present worth of an asset or company based on market prices, as opposed to historical cost or book value; often used in gauging financial performance.