Company a Has Decided to Purchase 100% of the Voting

question 45

Multiple Choice

Company A has decided to purchase 100% of the voting shares of Company B for $100,000 cash on January 1, 2018. Immediately before the acquisition, A and B reported cash balances of $300,000 and $150,000 respectively. If Consolidated Financial Statements were prepared immediately following the acquisition, how much Cash would be reported on A's consolidated balance sheet?

• A) $250,000
• B) $350,000
• C) $450,000
• D)$550,000

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Definitions:

Stimulants

Substances that increase alertness, attention, and energy by boosting the activity of the central nervous system.

Hallucinogens

Psychoactive substances that can cause altered perceptions, thoughts, and feelings.

Hallucinogen

A class of psychoactive substances that cause perceptual anomalies, sometimes including hallucinations, alterations in thought processes, and variations in consciousness.

LSD

Lysergic acid diethylamide, a powerful hallucinogenic drug that alters perception, moods, and various cognitive processes.