Question
McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. Inventory $125,000 Land 450,000 Buildings 575,000 Liabilities (590,000)
McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place.
Inventory | $125,000 |
Land | 450,000 |
Buildings | 575,000 |
Liabilities | (590,000) |
Common stock ($10 par) | (75,000) |
APIC | (200,000) |
Retained earnings (12/31/20) | (285,000) |
The fair value of McCoys 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 McCoys 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 the consolidated common stock account be as a result of this acquisition?
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