Peak issues 51,000 new shares of its common stock valued at $3 per share for all of the outstanding stock of Scene. Peak also incurred attorney costs of $10,000 related to the combination. Prior to these transactions, Peak, Inc., and Scene Corporation had the following stockholders’ equity figures:

Immediately following the business combination, what totals would appear on a consolidated balance sheet for Additional Paid-In Capital and Retained Earnings, respectively?

a. $104,000 and $300,000
b. $110,000 and $400,000
c. $192,000 and $290,000
d. $212,000 and $410,000

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Common stock ($1 par value) Additional paid-in capital Retained earnings Peak $180,000 90,000 300,000 Scene $ 45,000 20,000 110,000