The financial statement for Goodwin Inc and Corr Company for the year ended Dece

Question

The financial statement for Goodwin Inc and Corr Company for the year ended December 31, 2013, prior to Goodwin's acquizition business combinations rtansactions regarding Corr. follow (in thousands):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 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 valued at $560. Compute the consolidated revenue for 2013???? a. 2700 b. 720 c. 920 d. 3300 e. 1540

Goodwin $2,700 1980 Cor 600 400 $200 Revenues Expenses Net income 720 Retained earnings 1/1 Net income Dividends $2,400 720 (270) $2.850 $400 200 0 S600 Retained earnings, 12/31 Cash Receivables and inventory Buildings (net) Equipment (net) 240 1,200 2,700 2,100 $6,240 220 340 600 1.200 $2,360 Total assets Liabilities Common stock Additional paid-in capital Retained earnings $1,500 1,080 810 2,850 $6,240 $ 820 400 540 600 $2.360 itional paid-in capital Total liabilities & stockholders' equitv

Explanation / Answer

Consolidated revenue = Revenues of G + Revenues of C

                                    = $2,700 + $600

                                    = $3,300

Answer: d

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