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.