McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place. The fair value of McCoy's Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value)common stock in exchange for all of the shares of McCoy's common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.What will the consolidated common stock account be as a result of this acquisition?
A)$300,000.
B)$800,000.
C)$1,100,000.
D)$1,400,000.
E)$1,700,000.

Question

McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place.  The fair value of McCoy's Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value)common stock in exchange for all of the shares of McCoy's common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.What will the consolidated common stock account be as a result of this acquisition?
A)$300,000. 
B)$800,000. 
C)$1,100,000. 
D)$1,400,000. 
E)$1,700,000.

Quizplus · Accepted Answer

The Answer of McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place.  The fair value of McCoy's Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value)common stock in exchange for all of the shares of McCoy's common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.What will the consolidated common stock account be as a result of this acquisition?
A)$300,000. 
B)$800,000. 
C)$1,100,000. 
D)$1,400,000. 
E)$1,700,000.

McCoy Has the Following Account Balances as of December 31