Silver Enterprises Has Acquired All Gold Mining in a Merger

question 74

Multiple Choice

Silver Enterprises has acquired All Gold Mining in a merger transaction.The following balance sheets represent the premerger book values for both firms. Assume the merger is treated as a pooling of interests for accounting purposes.The total assets are _____ and the total equity is _____ on the post-merger balance sheet.

• A)$24,500; $10,500
• B)$24,500; $18,200
• C)$26,300; $10,500
• D)$26,300; $16,600
• E)$27,500; $19,400

---

Definitions:

Control Group

In experiments, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure the effects of the treatment on the experimental group.

Dependent Variable

In research, it is the variable that is being tested and measured, usually to see if it is affected by the independent variable.

Randomization

The process of making choices or selecting participants for a study randomly to eliminate bias and ensure impartiality.

Experimental Group

In research, a group of subjects who are exposed to the variable under study to assess its effect, as opposed to a control group.