Reference no: EM131219263
Carnes has the following account balances as of May 1, 2012 before an acquisition transaction takes place. Picture INVENTORY 100,000 LAND 400,000 BUILDINGS(NET) 500,000 COMMON STOCK (10$ PAR) 600,000 ADDITIONAL PAID-IN CAPITAL 200,000 RETAINED EARNINGS 200,000 REVENUES 450,000 EXPENSES 250,000 The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On May 1, 2012, Riley Company issues 30,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Carnes' common stock. Riley paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Riley has $700,000 in its common stock account and $300,000 in its additional paid-in capital account. What will be Riley's balance in its common stock account as a result of this acquisition?
A)$300,000. B)$990,000. C)$1,000,000. E)$1,590,000. F)$1,600,000.
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