The Financial Statements for Campbell, Inc

question 96

Multiple Choice

The financial statements for Campbell, Inc., and Newton Company for the year ended December 31, 2021, prior to the business combination whereby Campbell acquired Newton, are as follows (in thousands) : On December 31, 2021, Campbell obtained a loan for $650 and used the proceeds, along with the transfer of 35 shares of its $10 par value common stock, in exchange for all of Newton's common stock. At the time of the transaction, Campbell's common stock had a fair value of $40 per share.In connection with the business combination, Campbell paid $25 to a broker for arranging the transaction and $30 in stock issuance costs. At the time of the transaction, Newton's equipment was actually worth $1,450 but its buildings were only valued at $590.Compute the consolidated equipment (net) account at December 31, 2021.

• A) $1,300.
• B) $1,450.
• C) $2,100.
• D) $3,400.
• E) $3,550.

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Definitions:

Wavenumber

A unit of frequency used in spectroscopy, representing the number of waves per unit distance.

Arrow Pushing

A technique used in organic chemistry to describe the movement of electrons during chemical reactions.

Formal Charges

A bookkeeping tool used in chemistry to account for the distribution of electrons among atoms in a molecule, helping to identify the most stable resonance form.

Nucleophilic Acyl Substitution

A reaction where a nucleophile replaces the leaving group in an acyl compound.