Xenon Acquired 100% of Volt's Net Assets for $300,000 A)$968,000
B)$184,000
C)$784,000
D)$1,084,000

question 12

Multiple Choice

Xenon acquired 100% of Volt's net assets for $300,000. On the acquisition date, the fair value of the current assets and the net capital assets were $208,000 and $438,000 respectively. The fair value of the liabilities equalled their book value. On Xenon's statement of financial position, what is the total of its shareholders' equity? $\begin{array}{|l|r|r|} \hline& \text { Xenon Co. } & \text { Volt Ltd. } \\\hline \text { Current assets } & \$ 480,000 & \$ 80,000 \\\hline \text { Net capital assets } & \underline{800,000} & \underline{480,000} \\\hline & \$ 1,280,000 & \$ 560,000 \\\hline \text { Current liabilities } & \$ 336,000 & \$ 280,000 \\\hline \text { Long-term debt } & 160,000 & 96,000 \\\hline \text { Share capital } & 720,000 & 100,000 \\\hline \text { Retained earnings } & -64,000 & \$ \underline{64,000} \\\hline & \$ 1,280,000 & \$ \underline{560,000} \\\hline\end{array}$

• A)$968,000
• B)$184,000
• C)$784,000
• D)$1,084,000

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Definitions:

Justice And Fairness

The moral principles governing equity, impartiality, and the fair treatment of individuals within society.

Piagetian Tasks

Cognitive tasks developed by Jean Piaget used to assess stages of children’s cognitive development in areas such as logical thinking, conservation, and perspective taking.

Language Abilities

Refers to the capacity of individuals to communicate through spoken, written, or signed forms of language, encompassing both understanding and producing language.

Cognitive-developmental Perspective

A theory in psychology that emphasizes how children's thinking and reasoning change over time through stages of cognitive development.