Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 19

Purchase Method
Winston has the following account balances as of February 1.
Arlington pays $1.4 million cash and issues 10,000 shares of its $30 par value common stock (valued at $80 per share) for all of Winston's outstanding stock.Stock issuance costs amount to $30,000.
Prior to recording these newly issued shares, Arlington reports a Common Stock account of $900,000 and Additional Paid-In Capital of $500,000.For each of the following accounts, determine what balance would be included in a February 1 consolidation.
a.Goodwill.
b.Expenses.
c.Retained Earnings, 1/1.
d.Buildings.