Fact Pattern 31-1 Outlook Inc

question 47

Multiple Choice

Fact Pattern 31-1 Outlook Inc. merges with Pinnacle Inc. Only Pinnacle remains.
Refer to Fact Pattern 31-1. The articles of merger

• A) amend the articles of Pinnacle.
• B) disappear once the merger is complete.
• C) create an entirely new organization.
• D) take the place of the articles of Pinnacle.

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Definitions:

Depreciation Write-Off

The accounting process of allocating the cost of tangible assets over their useful lives to account for declines in value.

Weighted Average Cost

A calculation that takes into account the varying costs and quantities of resources or components, producing a composite average cost.

Earnings Before Interest

Earnings before interest is a measure of a company's profitability that calculates earnings before the expense of interest is deducted; it’s part of the calculation used for EBIT (earnings before interest and taxes).

Unlevered Cost

The cost of financing a project or investment without any debt.