Time to Sell the Family-Owned Business and Retire: Seller Beware! Ponzi Equities is a publicly owned company with approximately five million common shares outstanding, which are traded

(thinly) on the over-the-counter market. During its 15 years of existence, Ponzi issued common stock to acquire all of the outstanding common stock of approximately 20 companies, all of which were small, financially strong, family-owned businesses in which the owner(s) was (were) planning to retire. All of the combinations were structured to obtain purchase accounting.

Required 1. What major item must be addressed in applying the provisions of FAS 141 in which common stock is given as consideration?

2. If you were the owner of such a company, what would you do differently if Ponzi offered you common stock as consideration instead of cash}