On January 1, 20X1, the Moody Company entered into a transaction for 100% of the outstanding common stock of Osorio Company. To acquire these shares, Moody issued $400 in long-term liabilities and 40 shares of common stock having a par value of $1 per share but a fair value of $10 per share. Moody paid $20 to lawyers, accountants, and brokers for assistance in bringing about this acquisition. Another $15 was paid in connection with stock issuance costs. Prior to these transactions, the balance sheets for the two companies were as follows:

In Moody's appraisal of Osorio, three assets were deemed to be undervalued on the subsidiary's books: Inventory by $10, Land by $40, and Buildings by $60.
Compute the amount of consolidated additional paid-in capital at date of acquisition.
a. $1,080.
b. $1,420.
c. $1,065.
d. $1,425.
e. $1,440.

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Ratio Healthtime Mocek Return on equity 21.5% 32.3% Return on assets 16.4% Days' sales in receivables 42 36 Inventory turnover Gross profit percentage 51 % 53% Net income as a percentage of sales 8.3 % 7.2 % Times interest earned 16