The PEN Corporation with a Book Value of $20 Million

question 77

Multiple Choice

The PEN Corporation with a book value of $20 million and a market value of $30 million has acquired the CNC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase, then the total assets on the books of the new company will be

• A)$38 million.
• B)$39 million.
• C)$29 million.
• D)$26 million.

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