lynn acquires 100 percent of the outstanding voting shares of Macek Company on January 1, 2013. To obtain these shares, lynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. lynn\'s stock had a fair value of $36 per share on that date. lynn also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by lynn in stock issuance costs. The book values for both lynn and Macek as of January 1, 2013, follow. The fair value of each of lynn and Macek accounts is also included. In addition, Macek holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Flynn, Inc Macek Company Book Value Fair Value Retained Earnings 1,080 480 Assuming the combination is accounted for as a purchase, what amount will be reported for consolidated retained earnings?

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Under the acquisition method what amount will be reported f... View the full answer