Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders’ equity figures: Atkins Waterson Common stock ($1 par value) $ 210,000 $ 56,000 Additional paid-in capital 105,000 25,500 Retained earnings 389,000 140,000 Atkins issues 67,750 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively? Multiple Choice $232,500 and $529,000. $124,500 and $389,000. $130,500 and $529,000. $240,500 and $389,000.
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders’ equity figures: Atkins Waterson Common stock ($1 par value) $ 210,000 $ 56,000 Additional paid-in capital 105,000 25,500 Retained earnings 389,000 140,000 Atkins issues 67,750 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively? Multiple Choice $232,500 and $529,000. $124,500 and $389,000. $130,500 and $529,000. $240,500 and $389,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following
| Atkins | Waterson | |||
| Common stock ($1 par value) | $ | 210,000 | $ | 56,000 |
| Additional paid-in capital | 105,000 | 25,500 | ||
| 389,000 | 140,000 | |||
Atkins issues 67,750 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively?
Multiple Choice
-
$232,500 and $529,000.
-
$124,500 and $389,000.
-
$130,500 and $529,000.
-
$240,500 and $389,000.
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