The results of a consolidation are different from those of a merger¾both companies remain.
Answer the following statement true (T) or false (F)
False
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Ways to value a business include comparison to other firms, benchmarking, or looking at a multiple of net earnings. Any of the methods is an attempt to arrive at a ________.
A. future value B. net present value C. fair market value D. profit maximizing price
Answer the following statement(s) true (T) or false (F)
1. Paralegals are entitled, as a general rule, to learn of client information as part of assisting with the representation because paralegals are authorized members of the legal team. 2. Jurisdictions that have adopted the Model Code’s confidentiality rule apply a more liberal allowance for disclosures made to prevent client criminal conduct. 3. If a legal assistant, instead of a lawyer, is accused of wrongdoing with respect to the representation of the client, the supervising lawyer may not disclose client confidences in order to defend against the allegations. 4. Because lawyers in private practice are not operating as charities, they are allowed to disclose client information necessary to collect their fees. 5. The ABA has taken the position that because of the nonprivate nature of emails and fax messages, lawyers should not use those methods of communication.
Plum Corporation acquired 80 percent of Saucy Corporation's common shares on January 1, 20X7, at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Saucy Corporation. Saucy prepared the following balance sheet as of December 31, 20X8: Cash$70,000 Accounts Payable$40,000 Accounts Receivable 60,000 Bonds Payable 50,000 Inventory 80,000 Common Stock 150,000 Buildings and Equipment 400,000 Additional Paid-In Capital 50,000 Less: Accumulated Depreciation (120,000) Retained Earnings 200,000 Total Assets$490,000 Total Liabilities and Equities$490,000 On January 1, 20X9, Saucy declares a stock dividend of 9,000 shares on its $5 par value common stock. The current
market price per share of Saucy stock on January 1, 20X9, is $20.Based on the preceding information, the investment elimination entry required to prepare a consolidated balance sheet immediately after the stock dividend is issued will include a debit to Retained Earnings for: A. $20,000 B. $155,000 C. $200,000 D. $65,000
The income statement shows a firm's financial position on a specific date.
Answer the following statement true (T) or false (F)