Glen Co. acquires 100 percent of the outstanding voting shares of Nutley Company on January...

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Accounting

Glen Co. acquires 100 percent of the outstanding voting shares of Nutley Company on January 1, 2021. To obtain these shares, Glen pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Glen's stock had a fair value of $36 per share on that date. Glen also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Glen in stock issuance costs. The book values for both Glen and Nutley immediately preceding the acquisition follow. The fair value of each of Glen and Nutley accounts is also included. In addition, Nutley holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.

GLEN CO.

NUTLEY COMPANY

Book Value

Fair Value

CASH

$

900

$

80

$

80

RECEIVABLES

480

180

160

INVENTORY

660

260

300

LAND

300

120

130

BUILDINGS (NET)

1,200

220

280

EQUIPMENT

360

100

75

ACCOUNTS PAYABLE

480

60

60

LONG-TERM LIABILITIES

1,140

340

300

COMMON STOCK

1,000

80

ADDITIONAL PAID-IN CAPITAL

200

0

RETAINED EARNINGS

1,080

480

1) What amount will be reported for goodwill as a result of this acquisition?

2) What amount will be reported for consolidated additional paid-in capital?

3) What amount will be reported for consolidated cash after the acquisition is completed?

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