Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination)are as follows, along with the book value of Wilkins's accounts: Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding shares of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances)as a result of this acquisition transaction?
A)$60,000 and $490,000.
B)$60,000 and $250,000.
C)$380,000 and $250,000.
D)$593,000 and $250,000.
E)$593,000 and $490,000.

Question

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination)are as follows, along with the book value of Wilkins's accounts:  Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding shares of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances)as a result of this acquisition transaction?
A)$60,000 and $490,000. 
B)$60,000 and $250,000. 
C)$380,000 and $250,000. 
D)$593,000 and $250,000. 
E)$593,000 and $490,000.

Quizplus · Accepted Answer

The Answer of Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination)are as follows, along with the book value of Wilkins's accounts:  Assume that Wilkins issued 13,000 shares of common stock with a $5 par value and a $46 fair value for all of the outstanding shares of Granger. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2021 balances)as a result of this acquisition transaction?
A)$60,000 and $490,000. 
B)$60,000 and $250,000. 
C)$380,000 and $250,000. 
D)$593,000 and $250,000. 
E)$593,000 and $490,000.