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.

---

Definitions:

Television Commercials

Short marketing messages broadcasted on television to promote products, services, or ideas to a wide audience.

Response Bias

A tendency of respondents to answer questions on a survey untruthfully or misleadingly, often to present themselves in a favorable light or due to misunderstanding.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers and competitors.

Pleasing Behavior

Actions aimed at making others happy or satisfied, often by adapting one's behavior to meet their expectations or desires.