Figure:
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 an acquisition 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 acquisition.

Question

Figure:
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 an acquisition 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 acquisition.

Quizplus · Accepted Answer

To calculate consolidated revenues, we first need to add the revenues of both Atwood and Franz companies.

Consolidated Revenues = Atwood Revenues + Franz Revenues 
Consolidated Revenues = $2,500 + $380 
Consolidated Revenues = $2,880

Note: We do not include the fair value of Franz's net assets because it is not a revenue amount.

Figure: The Financial Balances for the Atwood Company and the Franz