Consolidated earning 660260300Land300120130Buildings (net)1,200220280Equipment36010075Accounts payable4806060Long-term liabilities1,140340300Common stock1,00080Additional paid-in capital 2000.Retained earnings1,080480Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be reported fcconsolidated retained earnings?Select one:O a. $1,350,000.O b. $1,535,000.O c. $1,560,000.O d. $1,830,000.O e. $1,080,000. Flynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2021. To obtain these shares, Flynn pays $400cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $36 per share on thatdate. Flynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid byFlynn in stock issuance costs.The book values for both Flynn and Macek immediately preceding the acquisition follow. The fair value of each of Flynn and Macek accounts isalso included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are inthousands. Any related question also is in thousands.Macek CompanyFlynn, IncBook Value Fair ValueCash$ 900$ 80$ 80Receivables480180160Inventory660260300Land300120130Buildings (net)1,200220280Equipment36010075Accounts payable4806060Long-term liabilities1,140340300Common stock1,00080Additional paid-in capital 200Retained earnings1,080480Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be reported fornsolidated retained earnings?

Consolidation means combination of assets and liabilities and other financial items of two or more…

O60 260 300 Land 300 120 130 Buildings (net) 1,200 220 280 Equipment 360 100 75 Accounts payable 480 60 60 Long-term liabilities 1,140 340 300 Common stock 1,000 80 Additional paid-in capital 200 Retained earnings 1,080 480 Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be rep consolidated retained earnings? Select one: O a. $1,350,000. O b. $1,535,000.

O60 260 300 Land 300 120 130 Buildings (net) 1,200 220 280 Equipment 360 100 75 Accounts payable 480 60 60 Long-term liabilities 1,140 340 300 Common stock 1,000 80 Additional paid-in capital 200 Retained earnings 1,080 480 Assuming the combination occurred prior to 2009 and was accounted for under the purchase method, what amount will be rep consolidated retained earnings? Select one: O a. $1,350,000. O b. $1,535,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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