What are consolidated additional paid- in capital

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Prior to being united in a business combination, Atkins, Inc., and Waterson Corporation had the following stockholders' equity figures:

                                                    Atkins                Waterson

Common stock ($1 par value)  $210,000            $ 56,000

Additional paid-in capital          105,000            25,500

Retained earnings                  389,000              140,000

Question 1: Atkins issues 67,750 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Immediately afterward, what are consolidated Additional Paid- In Capital and Retained Earnings, respectively?

Option 1: $124,500 and $389,000.

Option 2: $240,500 and $389,000.

Option 3: $130,500 and $529,000.

Option 4: $232,500 and $529,000.

Reference no: EM132488082

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