REFERENCE: Ref.02_06 The Financial Balances for the Atwood Company and the Franz

Multiple Choice

REFERENCE: Ref.02_06
The financial balances for the Atwood Company and the Franz Company as of December 31,20X1,are presented below.Also included are the fair values for Franz Company's net assets.
Note: Parenthesis indicate a credit balance
Assume a business combination took place at December 31,20X1.Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz.Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.
-Assuming Atwood accounts for the combination as a purchase,compute consolidated goodwill at the date of the combination.

A) $360.
B) $450.
C) $460.
D) $440.
E) $475.