Code Company Combines Its Assets and Liabilities with Those of Design

question 69

Multiple Choice

Code Company combines its assets and liabilities with those of Design Corporation to form Engineer Inc. Code and Design cease to exist. With respect to the assets of Code and Design, Engineer Inc. acquires

• A)none.
• B)only those acquired after the combination was proposed.
• C)an amount equal to the ratio of the firms' pre-merger market values.
• D)all.

---

Definitions:

Debit Card

A card that looks like a credit card but works like a check; using it results in a direct, immediate, electronic payment from the cardholder’s checking account to a merchant or third party.