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 revenues at the date of the 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 revenues at the date of the combination.

Quizplus · Accepted Answer

To compute consolidated revenues at the date of the combination, we need to add the revenues of both Atwood and Franz for the period ending December 31,20X1.

Atwood Company: 
Sales revenue = $1,800 
Interest revenue = $120 
Total revenue = $1,920

Franz Company: 
Sales revenue = $1,080 
Interest revenue = $90 
Total revenue = $1,170

Consolidated revenue = $1,920 + $1,170 = $2,880

Therefore, the correct answer is B.

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