Fact Pattern 31-2 Dynamo Corporation Combines Its Assets and Liabilities

question 10

Multiple Choice

Fact Pattern 31-2 Dynamo Corporation combines its assets and liabilities with those of Energy Company to form Fuel Inc. Dynamo and Energy cease to exist.
Refer to Fact Pattern 31-2. With respect to the assets of Dynamo and Energy, Fuel Inc. acquires

• A) none of the assets.
• B) only those assets acquired after the combination was proposed.
• C) an amount of assets equal to the ratio of the firms' pre-merger market values.
• D) all of the assets of both companies.

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Definitions:

Table Datasheet View

A data presentation style in database software that arranges information in a grid of rows and columns, akin to a spreadsheet layout.

Currency Field

A specialized field in databases or spreadsheets formatted to display and calculate financial data in the currency format.

Total Row

A row in a spreadsheet or database table that automatically calculates and displays the sum or another statistical measure of data in columns.

Average

A statistical measure that represents the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.