Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures: Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks.Assume that Taunton acquired Eubanks on January 1, 2020. Immediately afterwards, what is the reported amount of the consolidated Common Stock?
A) $240,000.
B) $302,000.
C) $304,000.
D) $366,000.
E) $410,500.

Question

Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures:  Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks.Assume that Taunton acquired Eubanks on January 1, 2020. Immediately afterwards, what is the reported amount of the consolidated Common Stock?
A) $240,000. 
B) $302,000. 
C) $304,000. 
D) $366,000. 
E) $410,500.

Quizplus · Accepted Answer

The Answer of Prior to being united in a business combination, Taunton Inc. and Eubanks Corp. had the following stockholders' equity figures:  Taunton issued 62,000 new shares of its common stock valued at $2.75 per share for all of the outstanding stock of Eubanks.Assume that Taunton acquired Eubanks on January 1, 2020. Immediately afterwards, what is the reported amount of the consolidated Common Stock?
A) $240,000. 
B) $302,000. 
C) $304,000. 
D) $366,000. 
E) $410,500.

Prior to Being United in a Business Combination, Taunton Inc