A 15-Foot Tree Growing in a Fence Row Is Used

question 19

Multiple Choice

A 15-foot tree growing in a fence row is used as a fence post to which barbed wire is stapled at a height of 5 feet. Years later, the tree is 30 feet high. The barbed wire would be

• A) 5 feet high.
• B) 15 feet high.
• C) 20 feet high.
• D) 10 feet high.

---

Definitions:

Dividend Payable

A liability recognized on a company's balance sheet when it declares dividends to be paid to shareholders.

Pre-acquisition Entries

Accounting entries made to adjust the assets and liabilities of a company being acquired to their fair market values at the date of acquisition.

Acquisition Date

The specific date on which control of the assets of an acquired company is transferred to the buyer.