On December 31, 2012, a Company Has Capital Assets with a Cost

question 6

Multiple Choice

On December 31, 2012, A Company has capital assets with a cost of $250,000 and accumulated amortization of $150,000 and B Company has capital assets with a cost of $180,000 and accumulated amortization of $80,000. B Company's capital assets have a fair value of $200,000 on that date. If Company A acquires Company B on January 1, 2013, and prepares a consolidated balance sheet on that date, at what values should the capital assets appear on that balance sheet (using the net method) ?

• A) Cost of $430,000 and accumulated amortization of $230,000.
• B) Cost of $450,000 and accumulated amortization of $150,000.
• C) Cost of $610,000 and accumulated amortization of $310,000.
• D) Cost of $630,000 and accumulated amortization of $230,000.

---

Definitions:

Marketing Messages

Communications intended to persuade or inform potential customers about products, services, or brands.

AIDA Model

A marketing framework that describes the stages of customer engagement: Attention, Interest, Desire, and Action.

Promotional Messages

Communications designed to inform, persuade, and encourage a target audience to take an action.

Conventional Marketing

Traditional marketing strategies that utilize mediums like print, television, and radio advertisements.