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:

Health Risks

Potential factors or behaviors that can lead to disease, injury, or other health problems.

Moral Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will incur the cost.

U.S. Population

The total number of residents living in the United States, as measured by census and population estimates.

Defensive Medicine

The practice by healthcare providers of ordering tests, treatments, or procedures primarily to protect themselves from litigation, rather than to benefit the patient's health.