Osicom Tech Is Acquiring Rexon's Outstanding Common Stock for $32

question 40

Multiple Choice

Osicom Tech is acquiring Rexon's outstanding common stock for $32 million.Before acquisition financial information on these two firms is given as follows (in $ millions) :

What are the total assets and stockholders' equity (in $ millions) if the purchase method is used as the accounting method for this merger?

• A)$170, $85
• B)$177, $92
• C)$170, $92
• D)$85, $92

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Definitions:

Two-tailed

Involves hypotheses testing that considers both directions of differences (greater than or less than) without specifying which direction.

Two-Tier Wage System

A labor compensation structure where employees doing the same job are paid different wages based on criteria such as seniority or date of hire.

Technical Background

The experience, knowledge, and qualifications one has in a specific field of technology or technical work.

Pay Structure

Pay Structure refers to the organization of different levels of salaries within a company, based on various factors such as job role, experience, and performance.