The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 2020, prior to the business combination whereby Goodwin acquired Corr, are as follows (in thousands):

Goodwin Corr

Revenues $2,700 $600

Expenses 1,980 400

Net income $ 720 $200

Retained earnings 1/1 $2,400 $400

Net income 720 200

Dividends (270) (0)

Retained earnings, 12/31 $2,850 $600

Cash $ 240 $ 220

Receivables and inventory 1,200 340

Buildings (net) 2,700 600

Equipment (net) 2,100 1,200

Total assets $6,240 $2,360

Liabilities $1,500 $ 820

Common stock 1,080 400

Additional paid-in capital 810 540

Retained earnings 2,850 600

Total liabilities & stockholders equity $6,240 $2,360

On December 31, 2020, Goodwin obtained a loan for $600 and used the proceeds, along with the transfer of 30 shares of its $10 par value common stock, in exchange for all of Corrs common stock. At the time of the transaction, Goodwins common stock had a fair value of $40 per share.

In connection with the business combination, Goodwin paid $25 to a broker for arranging the

transaction and $35 in stock issuance costs. At the time of the transaction, Corrs equipment was actually worth $1,400 but its buildings were only valued at $560.

Use the above information to answer the following questions:

1. Assuming that Corr retains a separate corporate existence after this acquisition, at what amount is the investment recorded on Goodwins books?

A) $1,540.

B) $1,800.

C) $1,860.

D) $1,825.

E) $1,625.

2. In this acquisition business combination, what total amount of common stock and additional paid-in capital should Goodwin recognize on its consolidated financial statements?

A) $ 265.

B) $1,165.

C) $1,200.

D) $1,235.

E) $1,765.

3. Compute the consolidated revenues for 2020.

A) $ 720.

B) $ 920.

C) $1,540.

D) $2,700.

E) $3,300.

4. Compute the consolidated receivables and inventory for 2020.

A) $1,200.

B) $1,515.

C) $1,540.

D) $1,800.

E) $2,140.

5. Compute the consolidated expenses for 2020.

A) $1,980.

B) $2,005.

C) $2,040.

D) $2,380.

E) $2,405.

6. Compute the consolidated cash account at December 31, 2020.

A) $240.

B) $400.

C) $425.

D) $435.

E) $460.

7. Compute the consolidated buildings (net) account at December 31, 2020.

A) $2,700.

B) $3,260.

C) $3,300.

D) $3,340.

E) $3,370