Prime Company acquired 100 percent of the voting common shares of Standard Video Corporation, its bitter rival, by issuing bonds with a par value and fair value of $150,000. Immediately prior to the acquisition, Prime reported total assets of $500,000, liabilities of $280,000, and stockholders' equity of $220,000. At that date, Standard Video reported total assets of $400,000, liabilities of $250,000, and stockholders' equity of $150,000. Included in Standard's liabilities was an account payable to Prime in the amount of $20,000, which Prime included in its accounts receivable.Based on the preceding information, what amount of total assets did Prime report in its separate balance sheet immediately after the acquisition before any consolidation with Standard Video?
A. $650,000
B. $500,000
C. $750,000
D. $900,000
Answer: A
You might also like to view...
Referring to Table 11.3, the cross-exchange rate between the euro and Swiss franc is approximately
a. .68 euros per franc.
b. .68 francs per euro.
c. .64 euros per franc.
d. .64 francs per euro.
Under the modified cash basis of accounting, adjustments are made only for
a. unpaid expenses and depreciation; b. prepaid expenses and depreciation; c. depreciation; d. unearned revenue; e. earned revenue and depreciation
Which of the following has research based on the Implicit Attitude Test shown?
a. Many people have biases based on race but the IAT has been unable to show biases with respect to sexual orientation. b. A vast majority of women have implicit biases for other women over men. c. A slight minority of Caucasians have implicit biases for Caucasians over African- Americans. d. A significant majority of Caucasians have implicit biases for Caucasians over African-Americans.
Morals are rules people develop as a result of cultural values and norms
Indicate whether the statement is true or false a. True b. False