The PEN Corporation with a Book Value of $20 Million

question 77

Multiple Choice

The PEN Corporation with a book value of $20 million and a market value of $30 million has acquired the CNC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase, then the total assets on the books of the new company will be

• A)$38 million.
• B)$39 million.
• C)$29 million.
• D)$26 million.

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Definitions:

Authority Compliance Behaviors

Actions that strictly adhere to the rules and directions given by those in power, often ignoring personal or ethical considerations.

Job Requirements

The necessary skills, qualifications, and experiences required to perform a specific job or role effectively.

People

Human beings individually or collectively, often referred to in contexts involving social behavior, community, and demographic aspects.

High Emphasis

Placing significant importance or priority on a specific aspect, goal, or criterion.