Pepper Company Paid $2,500,000 for the Net Assets of Salt

question 36

Multiple Choice

Pepper Company paid $2,500,000 for the net assets of Salt Corporation and Salt was then dissolved.Salt had no liabilities.The fair values of Salt's assets were $3,750,000.Salt's only non-current assets were land and buildings with book values of $100,000 and $520,000,respectively,and fair values of $180,000 and $730,000,respectively.At what value will the buildings be recorded by Pepper?

• A)$730,000
• B)$520,000
• C)$210,000
• D)$0

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Definitions:

Reconciling

The process of making one account or situation consistent with another, often involving the resolution of discrepancies.

Practice Records

Documentation kept by healthcare providers regarding the care and services provided to patients, often used for improving the quality of care.

Bank Statement

A bank statement is a summary of financial transactions that occurred over a given period on a bank account held by a person or business.

Third-Party Endorsement

A recommendation or approval of a product, service, or individual by an independent, external entity, often used in marketing to build trust.