Carnes has the following account balances as of December 31, 2017 before an acquisition transaction takes place. Inventory$100,000Land400,000Buildings (net)500,000Common stock ($10 par)600,000Additional paid-in capital200,000Retained earnings200,000Revenues450,000Expenses250,000??The fair value of Carnes' Land and Buildings are $650,000 and $550,000, respectively. On December 31, 2017, 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 the consolidated common stock account be as a result of
this acquisition?
A. $1,600,000.
B. $300,000.
C. $990,000.
D. $1,590,000.
E. $1,000,000.
Answer: E
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