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.

At the date of acquisition, by how much does Fergusons additional paid-in capital increase or decrease?

rev: 10_05_2019_QC_CS-182995, 10_11_2021_QC_CS-281560

Multiple Choice

• $0.

• $588,000 increase.

• $600,000 increase.

• $612,000 increase.

• $900,000 decrease.

2.)

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?

rev: 10_05_2019_QC_CS-182995, 10_11_2021_QC_CS-281560

Multiple Choice

• $300,000.

• $800,000.

• $1,100,000.

• $1,400,000.

• $1,700,000.

3.)

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 be the consolidated additional paid-in capital as a result of this acquisition?

rev: 10_05_2019_QC_CS-182995, 10_11_2021_QC_CS-281560

Multiple Choice

• $350,000.

• $650,000.

• $938,000.

• $950,000.

• $962,000.