Assume that Botkins acquired Volkerson on January 1, 2017.Immediately afterwards, what is the value of the consolidated Common Stock?

Question

Quizplus · Accepted Answer

To calculate the consolidated Common Stock value after acquiring Volkerson, we need to add the Common Stock value of Botkins and Volkerson. Botkins' Common Stock value is given as $150,000 in the balance sheet, while Volkerson's Common Stock value can be calculated as follows:

Volkerson Common Stock = Par value of outstanding shares + Additional paid-in capital 
= $60,000 + $66,000 
= $126,000

Therefore, the consolidated Common Stock value = Botkins' Common Stock value + Volkerson's Common Stock value 
= $150,000 + $126,000 
= $276,000

Hence, the correct answer is option D.

Assume That Botkins Acquired Volkerson on January 1, 2017