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McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. Inventory Land Buildings Liabilities $125,000 450,000 575,000 (590,000)
McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. Inventory Land Buildings Liabilities $125,000 450,000 575,000 (590,000) Common stock ($10 par) APIC (75,000) (200,000) Retained earnings (12/31/20) (285,000) The fair value of McCoy's Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value) common stock in exchange for all of the shares of McCoy's common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account. What will be the consolidated additional paid-in capital as a result of this acquisition? Multiple Choice $350,000. $650,000. $938,000. $950,000. $962,000
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