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) $ 163,000 $ 31,000 Additional paid-in capital 81,500 13,000 Retained earnings 390,000 148,500 Atkins issues 87,000 new shares of its common stock valued at $2 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 $168,500 and $390,000. $94,500 and $538,500. $88,500 and $390,000. $196,500 and $538,500.
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) $ 163,000 $ 31,000 Additional paid-in capital 81,500 13,000 Retained earnings 390,000 148,500 Atkins issues 87,000 new shares of its common stock valued at $2 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 $168,500 and $390,000. $94,500 and $538,500. $88,500 and $390,000. $196,500 and $538,500.
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) | $ | 163,000 | $ | 31,000 |
| Additional paid-in capital | 81,500 | 13,000 | ||
| 390,000 | 148,500 | |||
Atkins issues 87,000 new shares of its common stock valued at $2 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
-
$168,500 and $390,000.
-
$94,500 and $538,500.
-
$88,500 and $390,000.
-
$196,500 and $538,500.
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