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 purchase 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.
22. If the combination is accounted for as a purchase, at what amount is the investment recorded
on Goodwin's books?
A.
$1,540
B.
$1,800
C.
$1,860
D.
$1,825
E.
$1,625
23. If the combination is accounted for as an acquisition, at what amount is the investment
recorded on Goodwin's books?
A.
$1,540
B.
$1,800
C.
$1,860
D.
$1,825
E.
$1,625
24. Compute the consolidated revenues for 20X1.
A.
$2,700
B.
$720
C.
$920
D.
$3,300
E.
$1,540
25. Assuming the combination is accounted for as a purchase, compute the consolidated
expenses for 20X1.
A.
$1,980
B.
$2,380
C.
$2,040
D.
$2,015
E.
$2,005
26. Assuming the combination is accounted for as an acquisition, compute the consolidated
expenses for 20X1.
A.
$1,980
B.
$2,380
C.
$2,040
D.
$2,015
E.
$2,005