Figure: The Financial Statements for Jode Inc. and Lakely Corp., Just

question 54

Essay

Figure:
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 fairvalue 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:

Encryption Virus

A malicious program that searches for common data files and compresses them into a file using a complex encryption key, thereby rendering the files unusable.

Macro Virus

A virus that’s distributed by hiding it inside a macro.

Polymorphic Virus

A virus that changes its virus signature (the binary pattern that makes the virus identifiable) every time it infects a new file. This makes it more difficult for antivirus programs to detect the virus.

Macro Virus

A type of malware that is embedded in a document and can execute malicious sequences of commands upon opening the file.