13. The financial statements for Goodwin, Inc, and Corr Company for the year end

Question

13. The financial statements for Goodwin, Inc, and Corr Company for the year ended December 31, 2013, prior to Goodwin's acquisition business combination transaction regarding Corr, folow (in thousands): Goodwin Corr $2.700 Revenucs Expenses 1980 400 S 720 $200 Net income Retained carnings 1/1 Net income Dividends S2,400 720 $400 200 (270 O $2.850 $600 d earnings, 12/31 Cash Receivables and inventory Buildings (net) Equipment (nct) s 240 1.200 2,700 220 340 600 2100 1.200 6,240 $2 360 Total assets Liabilities Common stock Additional paid-in capital Retained earnings $1,500 1,080 810 2,850 S 820 400 540 Total liabilities & stockholders equity $6,240 $2,360 ' On December 31, 2013, Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to acquire 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 vahed at $560. 013 Compute the consolidated revenues for 2 A. $2,700. B. $720. C. S920. D. $3,300. E. $1,540.

Explanation / Answer

Consolidated amount of revenue is the aggregate of G’s revenue and C’s revenue.

Consolidation = G’s revenue + C’s revenue

                        = $2,700 + $600

                        = $3,300

Option: D

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