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.

Understand the diagnostic codes for various eye conditions.

Understand how transactions are recorded in the general and subsidiary ledgers.

Identify the principles and phases in the development of an accounting system.

Demonstrate the process of posting transactions from journals to the appropriate ledgers.

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Definitions:

Basaltic Shield-forming

The process of creating large, gently sloping volcanic mountains through the accumulation of fluid basaltic lava flows.

Welded Tuffs

Volcanic deposits formed from hot ash flows that solidify, with the particles welding together due to the heat.

Andesite

A volcanic rock of intermediate composition, typically found in volcanic arcs associated with subduction zones, characterized by a medium gray or brown color.

Silica Content

The proportion of silicon dioxide (SiO2) in a rock, mineral, or geological sample, influencing its physical properties and behavior.