Consolidated additonal paid-in capital


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

Atkins Waterson
Common Stock ($1 par value)     $180,000      $45,000
Additional paid-in capital                 90,000        20,000
Retained Earnings                        300,000       110,000

Atkins issues 51,000 new shares of its common stock valued at $3 per share for all of the outstanding stock of Waterson. Assume that Atkins acqures Waterson. Immediately afterward, what are consolidated Additonal Paid-in Capital and Retained Earnings Respectively?

a) $104,000 and $300,000
b) $110,000 and $410,000
c) $192,000 and $300,000
d) $212,000 and $410,000

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Finance Basics: Consolidated additonal paid-in capital
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