On February 5, Pryor Corporation Paid $1,600,000 for All the Issued

question 23

Multiple Choice

On February 5, Pryor Corporation paid $1,600,000 for all the issued and outstanding common stock of Shaw, Inc., in a transaction properly accounted for as an acquisition.The book values and fair values of Shaw's assets and liabilities on February 5 were as follows $\begin{array}{lrr} & \text { Book Value } & \text { Fair Value } \\\text { Cash } & \$ 160,000 & \$ 160,000 \\\text { Receivables (net) } & 180,000 & 180,000 \\\text { Inventory } & 315,000 & 300,000 \\\text { Plant and equipment (net) } & 820,000 & 920,000 \\\text { Liabilities } & (350,000) & (350,000) \\\text { Net assets } & \$ 1,125,000 & \$ 1,210,000\end{array}$ What is the amount of goodwill resulting from the business combination?

• A)$-0-.
• B)$475,000.
• C)$85,000.
• D)$390,000.

Grasp the procedural requirements for corporate meetings, including notice requirements and documentation like minutes.

Recognize the significance of and conditions for declaring and distributing dividends in corporate law.

Comprehend the specifics of shareholder classes and the role of shareholder participation in corporate decisions.

Gain insights into corporate mergers, acquisitions, and the disposal of assets under the Model Business Corporation Act (MBCA).

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Definitions:

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Pertaining to society or its organization, or relating to human society and its modes of organization.

Cultural Rules

The norms, values, and practices that are accepted and followed within a specific culture or society.

Socialization

The process through which individuals learn and internalize the values, norms, and behaviors that are considered appropriate in their society.

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The period in a human's life from birth to adolescence, characterized by growth, development, and learning within a familial and societal context.