REFERENCE: Ref.02_06
The financial balances for the Atwood Company and the Franz Company as of December 31,20X1,are presented below.Also included are the fair values for Franz Company's net assets.
Note: Parenthesis indicate a credit balance
Assume a business combination took place at December 31,20X1.Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz.Stock issuance costs of $15 (in thousands)and direct costs of $10 (in thousands)were paid.
-Compute consolidated inventory at the date of the business combination.

Question

REFERENCE: Ref.02_06
The financial balances for the Atwood Company and the Franz Company as of December 31,20X1,are presented below.Also included are the fair values for Franz Company's net assets.
  Note: Parenthesis indicate a credit balance
Assume a business combination took place at December 31,20X1.Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz.Stock issuance costs of $15 (in thousands)and direct costs of $10 (in thousands)were paid.
-Compute consolidated inventory at the date of the business combination.

Quizplus · Accepted Answer

To compute the consolidated inventory, we need to add the inventory of both companies. Atwood's inventory is $750, and Franz's inventory is $1,060. Therefore, the total inventory is $750 + $1,060 = $1,810.

REFERENCE: Ref.02_06 The Financial Balances for the Atwood Company and the Franz