Tilman Company Paid $360,000 to Acquire the Net Assets of Wilver

question 32

Multiple Choice

Tilman Company paid $360,000 to acquire the net assets of Wilver Company. If the business combination is treated as an acquisition and the fair value of Wilver Company's current assets is $135,000, its plant and equipment is $363,000, and its liabilities are $84,000, Tilman Company's financial statements immediately after the combination will include which additional item due to the acquisition of Wilver Company:

• A)Negative goodwill of $54,000.
• B)Plant and equipment of $498,000.
• C)Plant and equipment of $414,000.
• D)A gain of $54,000.

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Definitions:

Synaptic Connections

These are the points at which nerve cells (neurons) connect to communicate with each other, transmitting signals through chemical messengers.

Anatomical Change

Alterations or modifications in the structure of body parts, often due to development, aging, or disease.

Egocentrism

The inability to differentiate between one's own perspective and someone else's perspective.

Self-Centered Arrogance

An attitude of excessive pride centered around one's own needs, desires, and importance, often at the expense of others.