Use the Following Information to Answer Questions

question 3

Multiple Choice

Use the following information to answer questions
North Company issued 24,000 shares of its $20 par value common stock for the net assets of Prairie Company in business combination under which Prairie Company will be merged into North Company.On the date of the combination, North Company common stock had a fair value of $30 per share.Balance sheets for North Company and Prairie Company immediately prior to the combination were as follows:
-If the business combination is treated as an acquisition and the fair value of Prairie Company's current assets is $270,000, its plant and equipment is $726,000, and its liabilities are $168,000, North Company's financial statements immediately after the combination will include

• A)Negative goodwill of $108,000.
• B)Plant and equipment of $2,133,000.
• C)Plant and equipment of $2,343,000.
• D)An ordinary gain of $108,000.

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Definitions:

Melanoma

A type of skin cancer that develops from the pigment-producing cells known as melanocytes, often characterized by the uncontrolled growth of abnormal skin cells.

Melanocytes

Cells located in the skin and hair follicles that produce melanin, giving skin, hair, and eyes their color.

Melanin

A pigment produced by melanocytes in the skin, hair, and eyes, responsible for coloration and protection against ultraviolet light.

Itch Mite

A small parasite that causes severe itching by burrowing into the skin, leading to conditions such as scabies.