Compute the amount of the consideration transferred by Atwood to acquire Franz.
A) $1,750.
B) $1,760.
C) $1,775.
D) $1,300.
E) $1,120.

Question

Quizplus · Accepted Answer

Atwood transferred $1,000 cash and issued 750 shares of its $1 par value common stock to acquire Franz. The fair value of the stock was $1 per share. Therefore, the total consideration transferred by Atwood was $1,000 + (750 x $1) = $1,750.

Compute the Amount of the Consideration Transferred by Atwood to Acquire