Question: what amount will be reported for consolidated retained earnings under current GAAP? Flynn acquires 100 percent of the outstanding voting shares of Wemb Company on

what amount will be reported for consolidated retained earnings under current GAAP?

GAAP? Flynn acquires 100 percent of the outstanding voting shares of Wemb

Flynn acquires 100 percent of the outstanding voting shares of Wemb Company on January 1, 2023. To obtain these shares, Flynn pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Flynn's stock had a fair value of $35 per share on that date. Flynn also pays $15 (in thousands) to accountants and an attorney for arranging the acquisition. An additional $25 (in thousands) was paid by Flynn in stock issuance costs. The book values for both Flynn and Wemb immediately preceding the acquisition follow. The fair value of each of Flynn and Wemb accounts is also included. In addition, Wemb holds a fully amortized trademark that still retains a $60 (in thousands) value. The figures below are in thousands. yvua amount will be reported for consolidated retained earnings under current GAAP

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