Assume the Following Balance Sheets Are Stated at Book Value

question 39

Multiple Choice

Assume the following balance sheets are stated at book value. What will be the value of the equity account on the postmerger balance sheet assuming that Meat Co.purchases Loaf,Inc.and the pooling of interests method of accounting is used.

• A)$26,700
• B)$33,600
• C)$38,300
• D)$39,200
• E)$46,100

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product more efficiently.

Division of Labor

The assignment of different parts of a manufacturing process or task to different individuals in order to improve efficiency.

Knowledge

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Cultural Groups

Groups categorized based on shared characteristics such as ethnicity, language, traditions, and values.