Chapel Hill Company had common stock of $350,000 and retained earnings of $490,000. Blue Town Inc. had

Question:

Chapel Hill Company had of $350,000 and retained earnings of $490,000. Blue Town Inc. had of $700,000 and retained earnings of $980,000. On January 1, 2011, Blue Town issued 34,000 shares of with a $12 and a $35 fair value for all of Chapel Hill Company's outstanding common stock. This combination was accounted for as an acquisition. Immediately after the combination, what was the consolidated net assets?
A. $2,520,000.
B. $1,190,000.
C. $1,680,000.
D. $2,870,000.
E. $2,030,000.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...