The Balance Sheet of Mini Company Was as Follows Immediately

question 109

Multiple Choice

The balance sheet of Mini Company was as follows immediately before it was acquired by Maxi Company: On January 1, 2014, in a merger transaction, Maxi Company paid $350,000 in cash for 100% of the outstanding common stock of Mini Company. The fair value of Mini Company's plant and equipment was $140,000 on the date of acquisition. If the fair value and book value are the same for Mini's remaining assets and liabilities, what is the net increase in Maxi's assets only, after paying the cash for Mini?

• A) $430,000.
• B) $470,000.
• C)$120,000.
• D)$390,000.

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Definitions:

Organizational Leaders

Individuals within an organization who are responsible for setting strategic direction, inspiring and guiding the workforce.

Allocate Rewards

The process of distributing benefits, recognition, or compensation among members of an organization based on their performance, role, or achievements.

Encounter Stage

The phase in which an individual begins to understand and adapt to the values, norms, and required behaviors of an organization or group.

Organizational Socialization Process

The method through which new employees acquire the necessary knowledge, behaviors, and skills to become effective members of an organization.