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18. Prior to being united in a business combination, Lee Inc. and Torrance Inc. had the following stockholders' equity figures: Lee Torrance Common stock ($1
| 18. Prior to being united in a business combination, Lee Inc. and Torrance Inc. had the following stockholders' equity figures: | ||||||||||
| Lee | Torrance | |||||||||
| Common stock ($1 par value) | $220,000 | $54,000 | ||||||||
| Additional paid-in capital | 110,000 | 25,000 | ||||||||
| Retained earnings | 360,000 | 130,000 | ||||||||
| Lee issued 56,000 new shares of its common stock valued at $3.25 per share for all of the outstanding stock of Torrance. Assume that Lee acquired Torrance on January 1, 2020. | ||||||||||
| At what amount did Lee recored investment in Torrance? | ||||||||||
| Your answer: | ||||||||||
| 19. Based on the same information in the Question, immediately afterwards, what is consolidated Common Stock? | ||||||||||
| Your answer: | ||||||||||
| 20. Based on the same information in the Question , immediately afterwards, what is consolidated retained earnings? | ||||||||||
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