The PEN Corporation with a Book Value of $20 Million

question 34

Multiple Choice

The PEN Corporation with a book value of $20 million and a market value of $30 million has merged with 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:

National Authority

The centralized power exercised by a sovereign state over its territory and population, often manifesting through the enactment and enforcement of laws.

Separating Church and State

The principle aiming to ensure religious freedom by preventing government involvement in religious affairs and vice versa.

James Madison

The fourth President of the United States (1809-1817) known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Articles of Confederation

The first written constitution of the United States, in force between 1781 and 1789, which outlined a confederal government giving significant power to states.