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Nov 11, 2008, 08:45 AM
ATKINS WATERSON
Common stock ($1 par value) 180000 45000
Additional paid in capital 90000 20000
Retained earnings 300000 110000
Atkins issues 51000 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Assume that Atkins acquires Waterson. Immediately afterward, what are consolidated Additional Paid In Capital and Retained Earnings, respectively?
a. 104000 and 300000
b. 110000 and 410000
c. 192000 and 300000
d. 212000 and 410000
Common stock ($1 par value) 180000 45000
Additional paid in capital 90000 20000
Retained earnings 300000 110000
Atkins issues 51000 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Assume that Atkins acquires Waterson. Immediately afterward, what are consolidated Additional Paid In Capital and Retained Earnings, respectively?
a. 104000 and 300000
b. 110000 and 410000
c. 192000 and 300000
d. 212000 and 410000