The Acquisition Method Prior to being united in a business combination, Atkins,...

The Acquisition Method

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

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 acquires Waterson. Immediately afterward, what are consolidated Additional 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.