Hoyt Corporation Agreed to the Following Terms in Order to Acquire

question 56

Multiple Choice

Hoyt Corporation agreed to the following terms in order to acquire the net assets of Brown Company on January 1, 2018: (1.) To issue 400 shares of common stock ($10 par) with a fair value of $45 per share.
(2) ) To assume Brown's liabilities which have a book value of $1,600 and a fair value of $1,500.
On the date of acquisition, the consideration transferred for Hoyt's acquisition of Brown would be

• A) $18,000.
• B) $16,500.
• C) $20,000.
• D) $18,500.
• E) $19,500.

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Accounting System

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