Multiple-choice questions Part I of Homework 2 Select the best answer from the alternatives given and circle the letter of your choice. 1. On November 30, Pindar Co. purchased for cash at $26.8 per share all 250,000 shares of the outstanding common stock of Shimada Co., a business entity. Shimada reported net assets on that date with a carrying amount of $6 million. This amount reflected acquisition-date Fair value except for property, plant, and equipment, which had a fair value that was lower than its carrying amount by $800,000. In its November 30 consolidated balance sheet, what amount should Pindar report as goodwill? a. $1,500,000 b. $800,000 c. $700,000 d. SO d. $20,000 6. On December 31, year 1. Saxe Corporation was acquired by Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $10 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was Poe Saxe Common stock $3,000,000 $1,500,000 Additional paid in capital 1,300,000 150,000 Retained earnings 2.500,000 850,000 Total $6,800,000 2,500,000 In the December 31, year 1 consolidated balance sheet, additional paid-in capital should be reported at a. $950,000 b. $1,300,000 c. $1,450,000 d. $2,900,000