Hoyt Corporation Agreed to the Following Terms in Order to Acquire

question 36

Multiple Choice

Hoyt Corporation agreed to the following terms in order to acquire the net assets of Brown Company on January 1, 2021:To issue 400 shares of common stock ($10 par) with a fair value of $45 per share.To assume Brown's liabilities which have a book value of $1,600 and a fair value of $1,500.On the date of acquisition, the consideration transferred for Hoyt's acquisition of Brown would be

• A) $18,000.
• B) $16,500.
• C) $20,000.
• D) $18,500.
• E) $19,500.

---

Definitions:

Reliability

The degree to which an assessment tool produces stable and consistent results over time.

Validity

Refers to the degree to which a test accurately measures what it is intended to measure.

Survey Battery

A comprehensive set of surveys aimed to assess various dimensions of an individual's attitudes, beliefs, or behaviors.

Peabody Individual Achievement Test

A standardized test that assesses the academic achievement of children and adolescents in areas such as reading and math.