Problem: 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