Use the Following Information for Questions
O' Hara Company

question 108

Multiple Choice

Use the following information for questions
O' Hara Company began operations on December 1, 2011.Presented below is selected information related to O' Hara Company at December 31, 2011. $$\begin{array} { l r l r } \text { Office Equipment } & £ 40,000 & \text { Utilities Expense } & £ 6,000 \\\text { Cash } & 14,000 & \text { Accounts Receivable } & 27,000 \\\text { Service Revenue } & 108,000 & \text { Wages Expense } & 47,000 \\\text { Rent Expense } & 13,000 & \text { Notes Payable } & 10,000 \\\text { Accounts Payable } & 16,000 & \text { Dividends } & 15,000 \\\text { Share Capital } & 28,000 & &\end{array}$$
-Equity at December 31, 2011, is

• A) \(£ 148,000\)
• B) \(£ 121,000\)
• C) \(£ 93,000\)
• D) \(£ 55,000\)

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Definitions:

Synergy Value

The added value created by combining two companies where the performance of the combined entity is greater than the sum of the separate individual parts.

Acquisition

The process of taking control of another company by purchase or merger.

Outstanding Stock

Shares of a company that are owned by investors, including both public investors and company officers.

Market Price

The ongoing rate at which assets or services are bought or sold.