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Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders equity figures: Atkins Waterson Common stock ($1 par
Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders equity figures:
Atkins | Waterson | |||
Common stock ($1 par value) | $ | 230,000 | $ | 42,000 |
Additional paid-in capital | 115,000 | 18,500 | ||
Retained earnings | 350,000 | 156,750 | ||
Atkins issues 65,500 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid-In Capital and Retained Earnings, respectively?
Multiple Choice
$133,500 and $506,750.
$246,000 and $350,000.
$235,500 and $506,750.
$127,500 and $350,000.
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