Wilkins Inc

question 93

Multiple Choice

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins's accounts: Assume that Wilkins issued preferred stock with a par value of $260,000 and a fair value of $500,000 for all of the outstanding shares of Granger in an acquisition business combination. What will be the balance in the consolidated Inventory and Land accounts?

• A)$440,000, $540,000.
• B)$440,000, $560,000.
• C)$410,000, $540,000.
• D)$410,000, $560,000.
• E)$390,000, $460,000.

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Definitions:

R-134a

Current (2018) A/C refrigerant used in HD trucks and not projected for phase-out in the near future. GWP rating is 1,430.

Psig

Pounds per square inch gauge. Gauge pressure is equivalent to psi, not psia.

Liquid Refrigerant

A substance in liquid form used in refrigeration cycles to absorb and remove heat from a space to cool it.

Ambient Temperatures

The temperatures of the air or environment in which equipment, devices, or materials are situated, affecting their performance and operational requirements.